The homeowner has died. Who will pay the house debt?

If someone dies while #paying off a #house or #condo, who will inherit the debt?

The rule is that if the heir is the heir, they must also take on the debt, but it must not exceed the amount of the inheritance they received.

According to the rules regarding debt liability for a deceased person, the debt is normally passed on to the heir, but the heir is only responsible for the amount they inherited. For example, if we #borrow to buy a house for 3 million baht, and after we die, our mother or a family member inherits the property, they must pay the remaining debt.

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Therefore, if it's discovered that a family member cannot afford the remaining debt, the creditor will seize the property, #mortgage it, or auction it off. If the sale price exceeds the stated price, the creditor will return the remaining amount to the inheritor. However, if the sale price still falls short of the loan amount, the creditor will seize any remaining assets before the inheritance passes to the new heir.

Furthermore, a creditor must file a lawsuit for payment within one year. If this happens, the statute of limitations expires, provided that the heir enters into a separate agreement to pay the debt separately. In this case, they may be liable for the amount agreed upon.

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Died while paying off a #house, how do you solve this problem?


If we're planning to avoid becoming a burden on our family, we should purchase life insurance. Choose a type that pays out upon death in all cases, covering the remaining loan amount (the amount must cover the entire home price). It's best to purchase a standard, non-refundable premium directly from the insurance company. There's no need to purchase MRTA loan insurance, as it's typically a type of insurance that decreases over time, and the longer the loan goes, the less coverage you have. However, you should read the fine print to see if the premiums are low and the offer is good, but they're usually not as good as direct insurance. Therefore, when we die, the insurance company will pay the difference to the bank, and the bank will transfer the house to our heirs.

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Source: Dot Property: bit.ly/3sNwvsc