Why it is at risk
When the owner dies without the deed being updated, each heir owns a share. Anyone who holds a share, or buys one from a relative, can ask a court to force a sale of the whole property. Without clear title it is also hard to get a loan modification, a home repair loan or disaster aid, and property taxes can quietly go unpaid.
If there is a mortgage and you are not on the loan
Federal law protects family members who inherit. A lender cannot call the loan due just because the home passes to a relative after a borrower's death, as long as that relative lives in the home or will move in. 12 U.S.C. 1701j-3(d); 12 CFR 191.5(b).
Once the servicer confirms you as a successor in interest, it must treat you as a borrower, and you do not have to assume the loan. 12 CFR 1024.30(d), 1024.31 and 1024.38(b)(1)(vi). The loss mitigation protections generally apply when the home is a principal residence. Send the death certificate and proof of your interest, and ask in writing to be confirmed.
Protection from a forced sale
Many states have adopted the Uniform Partition of Heirs Property Act. It gives co-owners the right to buy out a co-owner who petitions for a sale, requires a court-ordered appraisal if the owners cannot agree on value, and favors dividing the land over selling it all. It applies only to property that meets the Act's definition of heirs property.
What to do
Keep paying the property taxes and keep the receipts. Gather the death certificate, the old deed, and a family tree. Then ask a legal aid office about probate or an affidavit of heirship to clear the title. After a disaster, FEMA accepts more types of ownership documents than it used to, so apply even without a clean deed.