Subject to question

[Dan Sheeks]

What happens if you're the buyer of a sub to deal and the person with the financing in their name dies?

[Rick H.]

The dangers of relying on getting your generic “what-if” questions answered here is that it has a high chance of being answered by someone (in another state) guessing what would occur.

In CA (my state), mortgages are generally not callable merely on death of borrower. The exception is a reverse mortgage which have breach terms that include death of last debtor on title or a surviving spouse.

From a practical standpoint, mortgage lenders and their loan servicers are not looking for a reason to accelerate (call loan all due) but may be triggered by poor admin practices of sub-2 buyer. If called due (I’ve done several thousand probate deals and it’s happened exactly once because of my early lack of training 40 years ago) you will run the risk of needing to pay of the old loan by refi or selling.