Feb192026
Partition Action Q&A Series

If the executor didn’t pay the mortgage or keep insurance on the house, what can I do to hold them accountable? – North Carolina

Short Answer

In North Carolina, a co-owner who is also serving as an executor (personal representative) can be held accountable in more than one way if they let a property fall behind on mortgage payments or lapse in insurance. Common options include asking the Clerk of Superior Court overseeing the estate to require an accounting and address fiduciary misconduct, and using a partition case to force a sale and request credits or contribution for carrying costs that were paid (or should have been paid) to preserve the property. The best path depends on whether the problem is primarily an estate-administration issue, a co-owner dispute, or both.

Understanding the Problem

In North Carolina, when a person co-owns a house with another co-owner who is also acting as the executor of an estate, the same person can wear two hats: co-owner and fiduciary. The question is what can be done when that executor does not keep up with core property obligations like the mortgage and homeowner’s insurance, creating foreclosure risk or uninsured loss risk. The decision point is whether accountability should be pursued through the estate proceeding, through a partition action between co-owners, or through both tracks depending on who had the duty and who suffered the harm.

Apply the Law

North Carolina law recognizes that (1) executors/personal representatives have fiduciary responsibilities in administering estate assets and (2) co-owners have rights and remedies against each other when one co-owner’s conduct (or nonpayment) harms the shared property. In a partition case, North Carolina also allows financial “true-ups” so that certain necessary expenses paid to preserve the property can be credited back to the paying co-owner, and waste claims can address damage caused by a co-owner’s misconduct.

Key Requirements

  • Identify the role and duty: Determine whether the nonpayment happened while acting as executor (estate administration duty) and/or as a co-owner (shared ownership duty).
  • Show the carrying cost or loss: Prove what was not paid (mortgage/insurance) and what harm it caused or risk it created (default fees, forced-placement insurance, property damage exposure, loss of equity).
  • Use the right forum and remedy: Estate remedies typically run through the Clerk of Superior Court supervising the estate; co-owner remedies (including partition and accounting/credits) run through a partition proceeding in Superior Court.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe a co-ownership situation where the other co-owner is also the executor and has accepted a sale contract that appears too low. If that same person also failed to keep the mortgage current or maintain insurance, the key questions become (1) whether those items are “carrying costs” tied to preserving the property and (2) whether the failure caused measurable harm or qualifies as waste. In a partition case, the financial accounting can be used to request credits/contribution tied to preserving the property, while estate-court remedies can focus on fiduciary accountability for mismanagement of estate-related responsibilities.

Process & Timing

  1. Who files: The co-owner seeking accountability. Where: (a) A partition action is filed in North Carolina Superior Court in the county where the property is located; (b) executor accountability issues are typically raised before the Clerk of Superior Court handling the estate. What: In the partition case, the filing requests partition (often by sale) and can include requests for accounting/credits for carrying costs and claims tied to waste. In the estate matter, the filing typically requests an accounting and appropriate relief for fiduciary misconduct. When: As soon as there is a real risk of foreclosure, uninsured loss, or a pending sale that may close before the issues are addressed.
  2. Build the proof: Gather the mortgage statements showing delinquency, lender notices, insurance cancellation/nonrenewal notices, proof of any forced-placed insurance, repair invoices, and a timeline showing when the executor/co-owner had control and what was (or was not) done.
  3. Ask for targeted relief: In partition, request that the court account for carrying costs under the partition statutes and address waste if the property was harmed. In the estate proceeding, request that the Clerk address fiduciary failures (for example, ordering an accounting and considering remedies that can include repayment to the estate or other corrective orders depending on the facts).

Exceptions & Pitfalls

  • “Mortgage” details matter: Contribution in partition commonly fits best when the loan was used to acquire the property (and the payments preserve everyone’s equity). Other loan situations can be more fact-specific, so the remedy may shift to waste, equitable accounting, or estate-court relief.
  • Proof problems: Claims rise or fall on documents. Missing statements, unclear payment histories, or informal cash arrangements can make it harder to show what was owed, what was paid, and who benefited.
  • Mixing roles without separating duties: A person can be a co-owner and an executor at the same time. Some failures may be co-owner misconduct; others may be fiduciary misconduct tied to estate administration. Using the wrong forum can delay relief.
  • Sale contract pressure: If a low sale contract is moving toward closing, waiting can reduce leverage. A partition filing (or estate-court motion) may be needed quickly to prevent irreversible steps.

Conclusion

In North Carolina, when an executor who is also a co-owner fails to keep the mortgage current or maintain homeowner’s insurance, accountability usually comes through (1) the estate proceeding before the Clerk of Superior Court for fiduciary oversight and (2) a partition action to force a sale and request financial credits/contribution for carrying costs and, when appropriate, relief for waste. The most important next step is to file the appropriate court action in the county where the property sits before foreclosure or an uninsured loss occurs.

Talk to a Partition Action Attorney

If a co-owner who is also the executor let the mortgage or insurance lapse and a sale is being pushed at a price that seems too low, our firm has experienced attorneys who can help explain the partition process, the accounting issues, and the timelines for getting the court involved. Call us today at [CONTACT NUMBER].

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Partition Action Q&A Series

Author: Pierce Law

Pierce Law Group is a North Carolina law firm focused on probate administration, real estate partition matters, and surplus funds claims across North Carolina. We know these situations often come with stress, family dynamics, and time-sensitive decisions—so we prioritize clear communication, steady guidance, and a practical plan from day one. Our goal is to make a complicated process feel manageable, while protecting what matters most to you.