Legal Question in Wills and Trusts in New York

If there is no insurance to pay off the mortgage, the loan stays on the house.

Assuming no other living parent (or other living party) is a cosigner on the mortgage loan, the parent's estate would likely be responsible for paying off the mortgage. Depending on whether the parent had a will or not, there would either be a probate or administration proceeding to determine if assets/funds are available to pay the mortgage; if sufficient assets are not available, a sale of the property would likely be required so that the mortgage lender gets paid. Sometimes assets- such as a house- are owned by a "trust" which is set up by individuals to avoid probate, among many other reasons. In any event, the mortgage typically stays with the house despite the death of the borrower.

If desired, it may well be possible for one or more of the children to purchase the house, instead of a sale to an outside party, in order to pay off the parent's mortgage (i.e. a child gets a new mortgage to pay off the old). Good luck.

NOTE: Please bear in mind that the above response is provided for informational purposes only, and does not constitute legal advice or create an attorney-client relationship. Because every case depends on unique facts, it is recommended that you contact and meet with a competent attorney in your area. Kindly feel free to contact me via telephone or email should you wish to further discuss your case and/or the possibility of obtaining representation. Thanks.