Information & Advice on Mortgage Probate

My mother passed away Sept. 2006 and refinanced her house I believe that same year. Can a bank follow up with her children?

My mother past September 19, 2006 and refinanced her house I believe that same year. My brother received a letter from Wells Fargo that if they don't get $1500 by the 27th of this month, they will proceed with foreclosing. We are trying to keep the house and would like to know how we can save it.

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Bill's Answer
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You do not mention in your question how much equity you and your siblings have in your late mother's home, or whether or not ownership issues have been resolved through probate. (Follow the link I just mentioned to learn more about the probate process.) If you and your siblings have been declared the rightful owners of the property by the courts, and if you have enough equity in the property to allow for a refinance loan, then refinancing the current mortgage on the home may be a good option to explore. If you qualify, a refinance loan could bring the delinquent loan current and end the threats of foreclosure. A refinance may also lower the interest rate and provide a longer loan term, thereby lowering your monthly loan payments, which could make it much easier for you and your brothers to keep up with the mortgage payments.

If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the Free Mortgage Refinance Quote page and find a loan that meets your needs.

With the current tightening of the mortgage market, you may have a difficult time obtaining a refinance loan, especially if you have had past credit problems. The only way to determine whether or not you will qualify for a refinance loan is to apply for a loan with several different lenders and/or brokers. Not only will these mortgage professionals be able to tell you whether or not your currently qualify, but if you do not qualify, they can tell you what aspects of your financial situation are causing you problems, and make suggestions about how to improve your chances to qualify for a loan. If you would like to read more about mortgage refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page. If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened mortgage brokers contact you to discuss the loan options available to you.

If addition to exploring refinance options, you should contact the mortgage lender, Wells Fargo, to discuss what assistance, if any, they can offer to help your family retain ownership of your late mother's home and prevent foreclosure. Frequently, lenders will allow borrowers to repay the delinquent mortgage balance over time, or even move the delinquent amount to the end of the loan term. What assistance is available depends entirely on the lender, so you must contact the lender as soon as possible to explain your family's financial situation and request a repayment play to prevent foreclosure. Before most lenders will agree to this type of arrangement, they will want to verify that you will be able to make your future mortgage payments as they come due, as their assistance with the delinquency will not change your obligation to continue making your regular mortgage payments.

If you and your brothers find that you cannot refinance or afford the current mortgage payments on the home, you may want to consider selling the property to repay the mortgage and cash out any equity you have in the home. If you are unable to make your future mortgage payments, the lender may foreclose on your home, which could cause you to lose the equity your mother worked to build in the home. Selling the home would generally be preferable to allowing the property to go into foreclosure.

Consult With a Lawyer

Because you and your brothers inherited this property was inherited together, I encourage you to consult with a probate attorney in your state to assist you in resolving any outstanding ownership issues. An attorney may also be able suggest alternative ways to resolve the mortgage delinquency and could also assist you in distributing any proceeds if you decide to sell the home. If you do not already have an attorney assisting you with the disposition of your late mother's estate, find one by contacting your state or county Bar Association's attorney referral service — find your state bar online or in your local phone book.

I wish you the best of luck in resolving the delinquency on your late mother's home.

I hope information I have provided helps you Find. Learn. Save.

Best,

Bill

Bills.com

12 Comments

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  • 35x35
    Mar, 2010
    Bill
    Consult with the attorney who is probating your mother's estate regarding the mortgage. It appears the mortgage may have a prepayment penalty, which may not be legal in your state. If you are not probating the estate with an attorney, now is the time to start working with one.
    0 Votes

  • 35x35
    Mar, 2010
    deanna
    my mother passed away in october. she had pulled out a mortage with a secondary lender about 6 months before her passing. we have kept the mortage is good standing as we await for probate to be finalized. they had sent us a letter a few weeks ago and said that if we are needing to change the mortage in anyway without penalty that it is to be done by the end of the month and if not that we are locked into the mortgage for another 2 years.the interest rates are outragous, but we are forced into the mortgage until probate gets threw and we have title on the house. my question is, once probate gets threw we will be changing the lender to a major bank with normal interest rates but are these "loan sharks" intitled to charging penalty and are there regulations since i am not the one that had originally signed with them.i understand the prior to probate going threw i need to act in her name but once title is in the benificiaries names, do we still have to be restrained by what my mother had done? as well are there regualtions that secondary lenders need to abyed by?-thank you
    0 Votes

  • 35x35
    Mar, 2010
    Bill
    There is not enough information in your message for me to answer your question. I urge you to consult with an attorney to 1) Be certain the estate is being probated according to Florida law, 2) Understand your spouse's rights and liabilities regarding the property in question, 3) Consider setting up a trust for the property for your own estate planning purposes.
    0 Votes

  • 35x35
    Mar, 2010
    Regina
    We moved in my ill in-laws a year ago in Flordia and started paying the mortgage. They put my husband on the deed to house and left the house to him in the will. They both recently passed. His brother is over the estate and now saying the lender will take the house back. Mortgage has been paid on time. Can we lose the house?
    0 Votes

  • 35x35
    Jul, 2009
    Mark
    The first part of my answer assumes you never probated your mother's will. If this is the case you need to contact a skilled attorney who specializes in wills and trusts immediately. Check with your county's bar association to get a list of specialists in your area who can help you with your issue. Do it now. Do not procrastinate. You mentioned that your goal is saving your home -- it's not yours, yet. And, it may never be if you keep putting off what you know you should have done 18 months ago. However, if you did probate the will, contact the attorney who probated the will and bring to his or her attention the mortgage issue.
    0 Votes

  • 35x35
    Jul, 2009
    VEW
    My mother passed away in Jan, 2008. I have been living home with my mother for many yrs.I took care of her and my father when they were ill to their passing..My brother lives here as well. My mother took out a mortage on the house about 10 yrs ago...she left a will, and left her home to her children. When she passed, the mortage was a few months behind, now it is about 10 months behind, but as far as they know, my mother is still alive, now they want to work with us, and want us to give them info as far as income that is going in and out of the home. What I need to know is if I tell them that she has been deceased since 2008, are we now considered just squaters, and are they able to put us out of our home ?? Will I be legal trouble for posing as my deceased mother since 2008...and should I put my home in probate or is it too late ?? Please help.....I can't loose my home.
    0 Votes

  • 35x35
    Mar, 2009
    Bill
    It is difficult to suggest anything as the eventual ownership of your step father's assets still needs to be decided by the probate court.
    0 Votes

  • 35x35
    Mar, 2009
    rick
    my stepfather passed away with no will. the estate is in probate, there is a business and a lake property. the business is going further and further into debt everyday. we have tried to get loans against the building to save the business and the bank states that they can not put the estate into further debt, is there any other solution as to how to get a loan to save the business? any help would be appreciated
    0 Votes

  • 35x35
    Mar, 2009
    Bill
    Do you have your own attorney? If not, you should retain one as soon as possible. Given the complexity of this situation, you would be taking a serious gamble trying to represent yourself. Your attorney should be able to obtain the necessary documents and work with your in-laws' attorney to make sure that all payments are made in an equitable manner. A good attorney should also be able to tell you what recourse you have against you in-laws to hold them accountable for their duplicity. I wish you he best of luck!
    0 Votes

  • 35x35
    Mar, 2009
    Antoinette
    We had two lawyers working on a closing. Since my in-laws took a illegal mortgage on the house. We have one and my in-laws have another. Their lawyer is holding the money. We have to divide the money for three owners,one is my husband. We are afraid that their lawyer might not give my husband his fair share. I've have not seen the recorded documents on line,it's almost a week. How can we find out about the lawyer's escrow control? We do not trust my in-laws at all. They lied and forged my husband's name to get the loan. We are glad that after four years the house is sold. But we are still waiting for the ball to drop. What can happen next.
    0 Votes

  • 35x35
    Feb, 2009
    Gary
    My wife passed in 2004. I atempted to go through the probate process because there was no will. I was told that my liabilities exceeded my assets so I needed to get my liabilities down. I have finally done that but I need to refinance the house. I have a son and 3 step children. Would I need their permission to refinance the house. Do I need the court to di=ecide who is the owne. Their is no despute with the children who are adults with families and thrie own housing. Please advise me. Thanks
    0 Votes

  • 35x35
    Feb, 2009
    Bill
    You really need to check on the title to see if there are multiple holders of the title, which would require permission before altering any liens against the home. There is one easy way to find out: apply for a refinance loan and let the loan officer search title for you and let you know! Good luck.
    0 Votes