What to do when a Guild Mortgage account holder dies

No. A mortgage is a debt secured by the home, not an asset, so there is no payable-on-death or beneficiary designation. When the borrower dies, the loan becomes an obligation of the estate and of whoever inherits the property. The estate resolves it by paying it off, assuming it, applying for hardship assistance, or selling the home. Guild retains servicing on most of the loans it originates, so the family generally deals with Guild directly rather than a separate servicer.

Generally yes, and this is the most valuable thing to know about a mortgage in an estate. Under the CFPB successor-in-interest rules (Regulation X, 12 CFR 1024.30-1024.41), once Guild confirms you as a successor in interest, it treats you as a borrower for most servicing purposes — you can get information about the loan and apply for loss mitigation — without being required to assume personal liability for the debt. Under the Garn-St. Germain Depository Institutions Act (12 U.S.C. 1701j-3(d)), a lender cannot enforce a due-on-sale clause when a relative inherits the home and occupies it, so Guild cannot demand the full balance just because title moved to you; the same protection covers a surviving joint tenant or spouse and certain transfers into the borrower's living trust. This does not, by itself, take the deceased borrower's name off the note — that is a separate assumption or refinance question.

Where the loan's investor allows it, a qualifying party can apply to assume the loan — take on legal responsibility for repaying it under its existing terms. Guild discloses an assumption fee of $300 to $2,400, charged "upon approval of changing the individual(s) legally responsible for repaying the loan." Assumption is different from successor-in-interest confirmation: being confirmed as a successor in interest gives you standing to deal with the loan and to seek loss mitigation, while an assumption makes you the party legally on the hook for the debt. Ask Guild's Loan Servicing help center at 800.365.4441 whether the specific loan is assumable.

A confirmed successor in interest can apply for loss mitigation without assuming the loan. Guild lists forbearance, a repayment plan, a loan modification, a payment deferral (deferring unpaid amounts to the end of the loan, non-interest-bearing), a partial claim (funds advanced to reinstate a delinquent loan against a subordinate note), a short sale (sale for less than the balance with written consent), and a deed-in-lieu of foreclosure among its solutions — some are not available for all investors. Contact the hardship-assistance team at 800.365.4884 (Monday-Friday 5 a.m.-5 p.m. PT) or email hardshipassistance@guildmortgage.net.

Guild does not publish a deceased-borrower document checklist, but a mortgage servicer generally needs a certified death certificate plus proof of your authority: Letters Testamentary or Letters of Administration if an estate is opened, the will (or proof of who inherits under state law if there is no will), the recorded deed or a recorded transfer-on-death / life-estate deed if the property passed automatically, and evidence of your relationship to the borrower if you are claiming successor-in-interest status. Send them with a cover letter carrying the loan number and property address to Guild Mortgage Company, LLC, Attn: Customer Service Department, 5887 Copley Drive, 3rd Floor, San Diego, CA 92111. Confirm the exact list by calling 800.365.4441 first.