What to do when a PennyMac account holder dies
Contact PennyMac — 5-step process, 5 required documents, and submit the death certificate as soon as possible. documenting successor-in-interest status and completing an assumption or refinance can take several weeks to a few months depending on probate and the credit and income review.
PennyMac Customer Service (loan servicing)
PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387
PennyMac Customer Service (loan servicing)
PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387
PennyMac Customer Service (loan servicing)
PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387
Notifying PennyMac of a death is not a claim for money — it is the step that stops the account, fixes the balance owed as of the date of death, and puts PennyMac on notice as a creditor of the estate. The estate services team handles it.
Before contacting PennyMac, have the account holder's full name, date of birth, and any available account numbers ready. A certified death certificate is required to initiate the claim.
Death claim process
Here is the step-by-step death claim process at PennyMac:
Filing a claim
- A co-borrower on the loan remains responsible for the mortgage and may continue to manage the account and make payments as usual.
- The executor or administrator of the estate can use estate assets to keep the mortgage current during probate.
- An heir or surviving family member who receives an ownership interest (by will, trust, divorce decree, or intestate succession) becomes a "successor in interest" once ownership and identity are documented.
- Proof of the event: a copy of the death certificate, final divorce decree, or trust agreement.
- Proof of transfer: the recorded deed or probate court documents showing the property was legally transferred to you.
- A copy of a valid photo ID, your current phone number and mailing address, and proof of relationship where the transfer results from a family member's passing.
- Continue the existing payments. Under the Garn-St. Germain Act, transfer to an heir who occupies the home does not trigger the due-on-sale clause, so an inheriting relative can generally keep making the current payments without paying the full balance immediately.
- Apply to assume the mortgage and become the primary borrower, which involves a formal review of credit and income to confirm eligibility.
- Refinance the loan into the successor's own name, subject to qualifying on credit, income, and assets.
- Sell the home; the outstanding balance is paid from the sale proceeds at closing and any remainder passes to the heirs.
Required Documents
- Copy of the death certificate (or final divorce decree or trust agreement, depending on the transfer)
- Recorded deed or probate court documents showing the property was transferred to the successor
- Copy of a valid government-issued photo ID
- Current phone number and mailing address for the successor in interest
- Proof of relationship (when the transfer results from a family member's passing)
What to know at this institution
A mortgage is tied to the home, not the person; the home is collateral. A successor in interest who did not sign the loan is generally not personally liable for the debt, but the home is still at risk of foreclosure if payments stop. PennyMac reviews each situation individually and may request additional documentation. Submit documents through the online Message Center or by mail to PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387.
Prepare your letter of instruction to PennyMac
PennyMac accepts a claimant-drafted letter of instruction. We draft it for you — addressed to PennyMac's verified claims department, with the documents it requires enclosed.
Build your letter of instructionHow long the process takes at PennyMac: Submit the death certificate as soon as possible. Documenting successor-in-interest status and completing an assumption or refinance can take several weeks to a few months depending on probate and the credit and income review. The most common reason for delays is missing or incomplete documentation, so submitting everything upfront is the best way to keep things moving.
PennyMac requires several documents to process a claim, including Copy of the death certificate (or final divorce decree or trust agreement, depending on the transfer), Recorded deed or probate court documents showing the property was transferred to the successor, and Copy of a valid government-issued photo ID, and additional documentation depending on the account type. Certified copies are typically needed—photocopies are generally not accepted for death certificates or court documents.
Frequently asked questions
Report the death to PennyMac and submit a copy of the death certificate at your earliest convenience, either through the secure Message Center in the online account or by mail to the Correspondence Unit. What happens next depends on the situation: a co-borrower continues to be responsible for the loan and can keep managing the account, an heir who received an ownership interest can apply to be recognized as a successor in interest, and someone who wants full ownership can later apply to assume the mortgage. Call customer support at 800-777-4001 with the loan number ready for assistance.
PennyMac generally asks for proof of the event (a copy of the death certificate, final divorce decree, or trust agreement), proof of transfer (the recorded deed or probate court documents showing the property was legally transferred to you), a copy of a valid photo ID, your current phone number and mailing address, and proof of relationship when the transfer results from a family member's passing. Because every situation is unique, PennyMac reviews the initial documents and requests any additional information needed to complete the process. Documents can be submitted through the online Message Center or by mail to the Correspondence Unit.
Submit a copy of the death certificate through the secure Message Center in the PennyMac online account, or by mail to PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387. You can also call customer support at 800-777-4001 (Monday - Friday 5:00 AM - 6:00 PM PT, Saturday 7:00 AM - 11:00 AM PT) with the loan number ready.
Often yes. Most mortgages contain a due-on-sale clause that lets the lender demand the full balance when the property transfers. The federal Garn-St. Germain Act limits enforcement of that clause after a borrower's death: an heir who inherits and occupies the home can generally keep making the existing monthly payments without triggering the due-on-sale clause. To become the primary borrower on the loan, a successor in interest can apply for an assumption, which involves a formal review of credit and income to confirm eligibility.
No. Mortgage debt is not discharged at death and does not pass by beneficiary designation. It is repaid from the estate, kept current by a co-borrower or heir, assumed, refinanced, or paid off from the proceeds of a sale. If no one keeps the loan current, PennyMac can pursue foreclosure to recover the debt.
If the deceased held multiple PennyMac mortgage loans, each may require a separate claim or have different documentation requirements. The estate services team can confirm which accounts require individual attention and which can be processed together.
Sources
Data sourced from PennyMac primary sources (4 pages reviewed). How we research.
PennyMac Customer Service (loan servicing)
PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387
PennyMac Customer Service (loan servicing)
PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387
PennyMac Customer Service (loan servicing)
PennyMac Loan Services, LLC, Attention: Correspondence Unit, PO Box 514387, Los Angeles, CA 90051-4387
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