This may not be the most cheerful topic by any means, but it is rather important! So without further ado…let’s tackle it like a boss and move on! Q: What happens to your mortgage after you pass away? A: Unless someone co-signed the loan or is a co-borrower with you, nobody is obligated to take on the mortgage. If the person who inherits the home decides they want to keep it, they may take over the responsibility of the mortgage. If neither of these things happen, the mortgage servicer will begin the process of foreclosing on the home.