What Is a Successor in Interest?

Learn What Happens When You Inherit a House

The term “successor in interest” refers to an individual who has acquired an ownership interest in a property even though they are not obligated to repay the loan secured by the property.

A successor in interest may acquire an ownership interest in the following ways:

• By death of a co-owner of the property
• Inheriting the property upon the death of a family member
• Transfer of property from a spouse or parent
• Divorce or legal separation, or
• Through a living trust

More than one person can be a successor in interest. For example, if your parents leave a family home to you and a sibling, each of you is a successor in interest with an ownership interest in the house.

Successors in interest are not liable for any loans associated with the home and are not required to make payments on these loans. Many successors in interest do want to continue making payments to Freedom Mortgage, however.

To get started, we will ask you for documents that prove that you are a successor in interest. The documents we request to confirm you are a successor in interest will be based on your state and the way you acquired an interest in the property. After we have confirmed your status as a successor in interest, we will send you an optional acknowledgment form for review.

If you sign and return the form, it will allow us to send you communications and information about the mortgage loan secured by the property. Please call us at 855-690-5900 to take the first step.

How Do You Prove You Are a Successor in Interest?

We will need several kinds of documents to confirm that you are a successor in interest. Once we receive all these documents, we will review your request and respond within 30 days. Required documents may include, but are not limited to:

• Proof of Your Identity

  You’ll need to provide a valid state ID, driver’s license, or passport.

• Proof of the Borrower’s Death

  You’ll need to provide documents that confirm the borrower has died, as well as their name and the date of death. Documents that can satisfy this requirement may include a death certificate, an obituary or newspaper notice, or an affidavit that declares death.

• Proof of Your Ownership Interest in the Property

  You’ll need to provide documents that confirm your ownership interest in the property. Documents that can satisfy this requirement may include a security instrument such as a deed of trust or mortgage, a will or testament, or an affidavit or court order. When you inherit a home from other heirs, we may require a warranty or gift deed.

Keep in mind that there are specific requirements that these documents will need to meet before they can be used to prove your ownership interest. We may ask for additional documents not listed here, too.

How Do You Prove You Are a Successor in Interest from a Divorce?

We will need a copy of the divorce decree or legal separation agreement as well as a quit claim deed or property settlement agreement. Keep in mind that the borrower typically remains liable for the mortgage in this case unless the loan is assumed by another party and there is a release of liability.

How Do You Prove You Are a Successor in Interest from a Living Person?

To confirm you are a successor in interest from a living person, we’ll need documents that show your relationship to the previous owner such as a marriage certificate, a birth certificate, or an adoption decree. We’ll also need to confirm your ownership interest in the house with a signed and notarized affidavit, recorded mortgage deed, court order, or signed agreement. Please note that most states only allow lifetime transfers of ownership to spouses or children.

How Do You Prove You Are a Successor in Interest from a Living Trust?

We’ll need a recently recorded mortgage deed, living trust agreement, certificate of trust, and/or a trust declaration to confirm that you are a successor in interest to a living trust.

Where Do You Mail Your Successor in Interest Proof Documents?

Freedom Mortgage Corp
P.O. Box 50485
Indianapolis, IN 46250-0485

How Can I Assume Financial Responsibility for the Loan?

If you would like to assume financial responsibility for the loan, please call us at 855-690-5900 so that we can review your options

Are Successors in Interest Required to Make Mortgage Payments?

No. Becoming a successor in interest does not mean that you become liable for the mortgage or are required to make mortgage payments. That liability remains with the borrowers named on the mortgage.

However, the property is still subject to the terms of the mortgage, and payments should be made to keep the loan in good standing. If the payments on the loan are not kept current, the home could enter foreclosure. This might affect your ownership interest.

Can You Sell a Home as a Successor in Interest?

Yes. You do not need to keep a home when you become its owner. You can sell the home, use the proceeds to pay off the mortgage, and keep any money that may remain. Please keep in mind that if payments on the home do not remain current, it could affect your ability to sell the home.

Who Do I Call with Questions About Successor in Interest?

When you have questions about successor in interest, please call us at 855-690-5900.

Last reviewed and updated October 2024 by Freedom Mortgage.