Your friend needs to file a petition for someone to be named executor of his mother's estate, settle all bills, and distribute whatever's left. He can submit a death certificate to the insurance company and apply to have the benefits paid to him directly. The house will be foreclosed by the mortgage company unless the monthly payments continue. However, the company may hold off on foreclosure for a few months once it has been notified of the owner's death.
Answered on Nov 20th, 2012 at 5:15 PM