If a home buyer passes away, does the mortgage still need to be repaid?

In daily life, most home buyers will pay the purchase price by taking out a mortgage loan. If the home buyer unfortunately passes away during the repayment process, should the mortgage still be repaid? Who should be responsible for the repayment? Now, let's follow Lawyer Yan Quanxi from Jinyan Law Firm to learn about the case! On September 16, 2018, Sun Moumou and Yang Mou, a couple, purchased a house from a certain real estate development company in Henan Province (hereinafter referred to as the "real estate company") at a total price of 896,000 yuan. They paid a down payment of 186,000 yuan and applied for a mortgage loan with the remaining 710,000 yuan. A certain real estate company provides a phased joint and several guarantee liability for this loan. During the loan repayment period, Sun Moumou and Yang Mou failed to fulfill their repayment obligations on time, resulting in the lending bank deducting 628,330.67 yuan from the real estate company's margin account, along with an overdue interest penalty of 23,326.02 yuan. Therefore, a certain real estate company took Sun Moumou and Yang Mou to court. After the court filed the case on November 18, 2022, it immediately applied for property preservation of 653,804.4 yuan under the names of the defendants Sun Moumou and Yang Mou. During the court service process, it was discovered that Sun Moumou had passed away unexpectedly on March 23, 2022. The plaintiff, a certain real estate company, represented by Lawyer Yan Quanxi of Jinyan Law Firm, immediately applied to add Sun Moumou's heirs to participate in the lawsuit. Among them, Sun Moumou's father, current wife and their children, as heirs, submitted a written statement of renouncing inheritance to the court. However, Huangfu Moumou, as one of his heirs, did not explicitly renouncing inheritance after being notified by the court, and thus was added as a defendant to participate in the lawsuit. The court held that the defendants Sun Moumou and Yang Mou borrowed money from the bank to pay for the house purchase, and the plaintiff, a certain real estate company, provided a phased joint and several liability guarantee. The personal house purchase loan guarantee contract signed by the three parties was a true expression of the intentions of all parties and did not violate the prohibitive provisions of laws and administrative regulations, and was an effective guarantee. As the defendants Sun Moumou and Yang Mou failed to repay the borrowed loans as agreed, a certain real estate company, as the guarantor, assumed the guarantee liability. According to Article 700 of the Civil Code of the People's Republic of China: After a guarantor assumes the guarantee liability, except as otherwise agreed by the parties, he has the right to claim compensation from the debtor within the scope of the guarantee liability and enjoys the rights of the creditor against the debtor, but shall not harm the interests of the creditor. After repaying the principal and interest of the loan on behalf of the plaintiff, a certain real estate company is legally entitled to the right of recourse and has the right to claim compensation from the co-debtor Yang Yan as agreed. After Sun Moumou's death, the defendant Huangfu Moumou, as the heir, shall settle the debts incurred by the decedent during his lifetime. The settlement of debts shall be limited to the actual value of the inherited estate. The final judgment was that the defendant Yang should repay the plaintiff, a certain real estate company, 651,656.69 yuan in compensation and 2,147.71 yuan in liquidated damages. Huangfu Moumou shall bear the joint liability for repayment. The case acceptance fee and the application fee for preservation shall also be borne by the defendant. The typical significance is that the plaintiff, a certain real estate company, sold the involved house to the defendant. The defendant took out a mortgage loan to purchase the house, and the defendant's bank loan agent provided a phased guarantee for it. During the performance of the contract, one of the defendants, Sun Moumou, died unexpectedly, resulting in his family's failure to pay the monthly mortgage payment in a timely manner. Based on this, the lending bank deducted the remaining loan from the margin account of the plaintiff, a certain real estate company. After repaying the mortgage, the plaintiff lawfully exercised the right of recourse against the defendant. The peculiarity of this case lies in the fact that the plaintiff was unaware of the death of the defendant Sun Moumou at the time of filing the lawsuit. As a result, during the litigation, Sun Moumou's legal heirs were added to the case to participate in the lawsuit, and the litigation requests were accordingly changed. Ultimately, after review, the court ruled in accordance with the law to support the plaintiff's lawsuit request. Article 577 of the Civil Code of the People's Republic of China: Where a party fails to perform its contractual obligations or performs them in a manner inconsistent with the agreement, it shall bear the liability for breach of contract by continuing to perform, taking remedial measures or compensating for losses. Article 700 After a guarantor has assumed the guarantee liability, except as otherwise agreed by the parties, he has the right to claim compensation from the debtor within the scope of the guarantee liability he has assumed and enjoy the rights of the creditor against the debtor, but shall not harm the interests of the creditor. Article 1124 After the commencement of inheritance, if an heir renounces the inheritance, he or she shall make a written expression of renunciation before the disposal of the estate. If no indication is given, it shall be regarded as acceptance of inheritance. The legatee shall, within sixty days from the date of knowing of the legacy, make an indication of acceptance or renunciation of the legacy. If no indication is made upon expiration, it shall be deemed that the bequest has been waived. Article 1161: The heir shall settle the taxes and debts that the decedent is legally obligated to pay within the limit of the actual value of the inherited estate. The portion exceeding the actual value of the estate that the heir voluntarily repays is not subject to this restriction. Where an heir renounces inheritance, he or she may not be liable for the taxes and debts that the decedent is legally obligated to pay.

Article 147 of the Civil Procedure Law of the People's Republic of China: If a party is dissatisfied with the judgment of the first instance of a local people's court, he or she has the right to appeal to the people's court at the next higher level within 15 days from the date of service of the judgment. If a party is dissatisfied with the first-instance ruling of a local people's court, it has the right to appeal to the people's court at the next higher level within ten days from the date of service of the ruling. Introduction to lawyers

Yan Quanxi, a master of Laws from Zhengzhou University, is a senior partner at Jinyan Law Firm. He specializes in civil and commercial law as well as real estate, and is proficient in handling non-litigation legal affairs throughout the real estate development process and property management legal affairs. He has successively obtained professional qualification certificates such as the (SAC) securities Practice qualification, the (CCBP) banking practice qualification, the (CIPA) investment project analyst qualification, and the bankruptcy administrator qualification. He is the vice president of the Jiaozuo Lawyers Association and has been honored with titles such as "Top Ten Lawyers in Jiaozuo". He has successively served as the long-term legal advisor for multiple government agencies, enterprises, institutions and real estate companies, including the People's Government of Jiaozuo City, the People's Government of 武陟县, jiaozuo Daily, the finance Bureau of jiaozuo city, the Construction committee of 武陟县, jiaozuo jindeli Real Estate, henan yixiang Real Estate, henan zhonghai Real Estate and industrial and Commercial Bank of China. Contact: Tel: 13303913366 email: 723122081@qq.com