The death of the owner and the fact that the estate is insolvent do not extinguish the mortgage on the property. The debt secured by the mortgage must be taken into account in the settlement of the estate.

When a mortgaged property is sold as part of liquidation, the liquidator must take into account the rights of the mortgagee and the ranking of their mortgage.

In an insolvent estate, priority or mortgage creditors are paid according to their rank, before other creditors according to the order provided by law.

The proceeds from the sale of the property do not necessarily represent a sum entirely available to pay the other debts of the estate. In particular, mortgages and other rights that may affect the property must be taken into account.

If the value of the property is greater than the amounts that must be paid due to the taxes encumbering it, the available balance can be used to pay the other debts of the estate in accordance with the applicable rules.

On the other hand, if the value of the property is insufficient to cover the mortgage debt, special rules may apply to the balance of this debt.