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The mortgage contracts are legal documents and assets of the estate. They can either be sold to third parties for cash or they become property of the heirs as in a partnership. The heirs can then negotiate their way out of the partnership. If there are multiple mortgages, dividing them between the heirs could be possible if the heirs are agreeable.

It probably comes down to the executor to discuss the issue with the heirs and decide how best to deal with the situation. If the heirs are agreeable, it can be easy. If not, it can take a while and legal fees can eat into the estate.

The contracts in her portfolio probably changes from time to time as some are paid off and she enters into new ones. That makes pre-planning problematic, but if circumstances arose giving her time to prepare, she might be able to will specific mortgages to specific heirs--to avoid this problem. A lawyer should be able to help. She could also put them into a trust for the heirs and then specify how heirs will paid as the loans are repaid.
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