What to do when a SLS account holder dies

A successor in interest is someone who receives an ownership interest in the home after the borrower dies - for example a surviving spouse, a joint owner, or an heir who inherits the property. Under the CFPB successor-in-interest rules (Regulation X, 12 CFR 1024.30 through 1024.41), once SLS confirms a successor in interest, that person can receive account information and apply for loss mitigation and is treated as a borrower for most servicing purposes, without being required to assume personal liability for the debt. Confirmation requires documents such as a deed, the will, Letters Testamentary or Administration, or an affidavit of heirship.

No. A mortgage is a debt secured by the home, not an asset with a payable-on-death or beneficiary designation. When the borrower dies the loan does not disappear; it becomes an obligation that the estate or the person who inherits the home resolves through payoff, assumption, loss mitigation, or sale.

The federal Garn-St. Germain Depository Institutions Act (12 U.S.C. 1701j-3(d)) prevents a lender from enforcing the due-on-sale clause when a relative who inherits the home moves in and takes over the mortgage. The same protection covers a transfer to a surviving spouse or joint tenant and certain transfers into the borrower's living trust. This lets an inheriting family member continue the existing loan rather than being forced to refinance or pay it off immediately. SLS still requires documentation confirming the death and your ownership interest before releasing information.

SLS asks for a certified copy of the death certificate plus documents that establish your standing: evidence of relationship or ownership interest (marriage certificate or deed), the will if one exists, Letters Testamentary or Letters of Administration if an estate is opened, a recorded Transfer on Death or Life Estate deed if the property passed automatically, or an affidavit of heirship for an intestate estate where recognized. Confirm the current list with customer care at 800-315-4757.

A transfer of servicing moves who collects the payments and administers the loan; it does not change the interest rate, principal balance, or other terms of the mortgage note. After a borrower dies, the deceased-borrower and successor-in-interest process is handled by SLS as the current servicer regardless of who originated the loan.

Computershare (through Computershare Mortgage Services Inc.) sold Specialized Loan Servicing to Rithm Capital. The transaction was announced on October 2, 2023 and closed in the first half of 2024, transitioning SLS's portfolio and operations to Newrez LLC, a Rithm Capital portfolio company. The sls.net site now carries SLS/Shellpoint branding, and the deceased-borrower process is handled through SLS customer care.