When someone dies and they owned property with a debt attached to it (like a mortgage), a court can allow the person in charge of the estate to pay off that debt using other money or assets from the estate. This frees up the property so it becomes a full asset of the estate. The court can also allow that property to be sold instead. This only happens under certain conditions, like when it benefits the estate and does not hurt the people the estate owes money to.
473.287. to be redeemed, when. — 1. If any person dies leaving by , , , or other , or owning any , the court, in accordance with the of this , may the or to redeem the same, in whole or in part, out of other personal of the , or may order the executor or administrator to sell other or to mortgage or pledge real or personal property of the estate in his hands for the purpose of raising money for such . If there is a section 473.620 applies with respect to the or use of the property for the redemption. When not prejudicial to the rights of , the court may order redemption, if it finds:
(1) The property is not by a will and redemption will promote the interests of the estate and upon payment of the the will become an of the estate; or
(2) The will of the , either by express or clear implication, shows that the decedent intended that the secured debt, in the event of his death, should be paid out of other assets of his estate and the security from the lien of the debt; or
(3) From the terms of the loan or mortgage agreement or from the circumstances surrounding the loan or mortgage , that decedent, whether or , intended that the debt, in the event of his death, should be paid out of the other assets of the estate and that the security should be thereby exonerated from the lien of the debt.
2. No redemption of property securing an which is not due shall be compelled under this section without the of the of the secured debt unless a is filed thereon or the creating the obligation permits redemption.
3. The court may order all of the of the in the security to be sold for the same purposes and under the same conditions and procedure as is provided in this law for sales of other property of the decedent.
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Source & history notes
(L. 1955 p. 385 § 113, A.L. 1957 p. 829) Prior revisions: 1929 § 139; 1919 § 138; 1909 § 147 Foreclosure of mortgages stayed by death of mortgagor, 443.300
Related Missouri laws
Payment of debt of decedent secured by property of another
RSMo 473.290
Title to real estate, how taken on such purchase
RSMo 473.283
Disposition of valueless or encumbered property
RSMo 473.293
Purchase at foreclosure of mortgage held by estate
RSMo 473.280
Compromise of debts due estate
RSMo 473.277
Expenditures for preservation of property
RSMo 473.297
Legal information, not legal advice. Always confirm with the official source at revisor.mo.gov.