Legal Question in Real Estate Law in New Jersey

The private mortage is an asset of the deceased person's estate, like all other assets and would be handled with all other assets of the estate. The representative of the estate (either an executor or administrator) would be responsible for dealing with this. You should find out who is the appointed representative of the estate and deal with that person on this issue.

Keep in mind that this information is given based on the scanty facts that you have provided. And no one can rely on advice from an attorney who has not been retained. In order to be able to rely upon any advice, you need to meet with and retain an attorney, who will be able to give you advice after a full and comprehensive interview. Before you do anything, you should contact an attorney for a full consultation. Good Luck! Rob Gleaner

The answer is not a simple one. In the usual case, a mortgage and a note are associated as two parts of the same transation. The note is evidence of a loan to be repaid over time and the mortgage is an interest in property given to secure repayment. In most, well-drafted, modern notes and mortgages, the lender's rights are assignable, alienable, and devisable (can transfer by will). If that is the case, then what Mr. Gleaner has said is true. Namely, that the rights under the mortgage will pass in probate as part of the estate. Correspondinly, so would the right to receive repayment under the note. However, documents that are not well-drafted sometimes do not achieve this result. For example, in this forum, I have cautioned people who have heard about quitclaim deeds and think that they are easy ways to change the ownership of real property against acting except on the advice of counsel Those who do not heed that advice run the risk of creating a default in a mortgage loan or a disconnect between the ownership of the land and the obligation to repay a loan. So, the long answer to your question is that the note, mortgage, and subsequent history of the land need to be examined before you can have a definitive answer.

See also: http://info.corbettlaw.net/lawguru.htm