awarded property of person who died instestate

As personal representative, you have the ability to transfer probate property of the person who died.  Probate property is only that property that was owned solely by that person (no joint owner or not owned by a trust) and did not have a beneficiary or pay-on-death designation to another person.  If the real estate subject to the mortgage was owned solely by the person who died, it is probate property.  If the person left no Will, the law of intestacy applies.  Assets go to a surviving spouse, children, parents, siblings, nieces and nephews, etc. depending on the closest relatives that survived that person.  Nolo.com has a good summary of Arizona intestacy law.  It then is your responsibility to execute a deed for the real estate to those who are entitled to it under the law of intestacy.  This person or persons takes the real estate subject to the mortgage.  The mortgage agreement may require that the loan be paid in full upon tranfer of ownership, but, in most cases, there is an exception for property inherited by relative if the payments are kept up.  You have the authority to request the mortgage document as the personal representative, and to negotiate with the bank on behalf of the estate.  If the estate has any funds, it should keep current with the mortgage payments as well as other expenses for the real estate, such as insurance.  I don't know all of the details of this situation, but it sounds like you need to determine who is entitled to this property and then arrange for a professional to draft a deed for it.  Also keep in mind that there is a creditor period for estate when any creditors can come forward to present claims, so you may not want to transfer this real estate if the creditor period has not ended.  In most states, the creditor period is four months starting when the personal representative is appointed.