QUESTION
If I call them to speak with them about payments, will they allow me to do this or will they force me to refinance or leave?
Asked on Jan 15th, 2013 on Foreclosures - New York
More details to this question:
My father passed away in September 2012. I talked to my lawyer and decided to just take over the mortgage and live here, since the home has been in our family for generations. There is only a mortgage on it now because my father had to refinance it due to a divorce. We haven't told the mortgage company anything of his passing because I was told by my lawyer that as long as it’s paid, that’s all they care about. Now I'm behind on the mortgage and it’s in default. With income tax coming, I will be able to get current with it within about a month but I'm worried about the mortgage company may start foreclosure. Should I call them to speak with them about it? I can't refinance the mortgage in my own name because I don't have the credit, so it must stay in my father’s name.
6 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Each state has different laws, therefore you need to talk to a foreclosure attorney licensed to practice in the state where the property is located.
Answered on Jan 24th, 2013 at 1:40 PM
Child Custody Attorney serving Milwaukee, WI
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Zales Law Office
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It all depends on who holds the mortgage. Smaller banks are generally more willing to deal than larger ones. You should consider hiring an attorney to deal with them. I find they respond to attorneys far more than dealing with homeowners.
Answered on Jan 18th, 2013 at 3:14 PM
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A lender would not even begin foreclosure proceedings until 3-4 months after the loan is past due.
Answered on Jan 18th, 2013 at 3:13 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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You can speak to them, but you will need to show proof of your father's passing and proof that you are the executor of the estate or that the executor has authorized you to speak to them. Otherwise, if you can get your tax refund, pay what is behind.
Answered on Jan 18th, 2013 at 3:13 PM
There is a danger in contacting the lender. Most trust deeds contain a provision called a "due-on-sale" clause. That clause provides that the lender can accelerate (i.e. demand immediate payment of) the indebtedness upon ANY transfer, whether voluntary (i.e. a sale) or involuntary (i.e. death of the borrower).
Answered on Jan 18th, 2013 at 3:13 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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All the banks will talk with you and put you in a modification program for one or two years. They will tell you that the documents you send them have not be received. Depending on the bank you will then be sued for foreclosure. If you are being sued for foreclosure the time for talking has ended. Seek counsel for bankruptcy or someone who knows how to defend the foreclosure matter on its merits.
Answered on Jan 18th, 2013 at 3:06 PM