Will mortgage company let me continue paying for my grandmother's home?

Question

My grandmother died and I live in the home she held a mortgage on.  I continue to pay the mortgage payments but I was wondering if I tell the mortgage company that she died, will I have to refinance the home or  they will just continue to allow me to make payments?

James Frederick · Answer

As long as the loan is current, they cannot force you to refinance, accelerate the debt or foreclose the loan. There is a federal law that protects you from this. If the mortgage is ever in arrears, then they have a number of remedies, including all of the above.

Dara J. Goldsmith · Answer

You need to review the promissory note's terms to determine what will occur.

Jayne Sebby · Answer

The mortgage company will probably want you to refinance the property in your own name and prove that 1) you hold a legal title to the property and 2) can afford to make the payments.

Georges Shers · Answer

It depends entirely upon the mortgage company and what your credit rating is. Your grandmother's death cancels the loan and makes it all due and payable. You are under the contract obligated to tell them she has died, although it is likely they will not otherwise know. If the mortgage is at a higher than market rate percentage and you have good credit and no more than about a 45/100 debt to income ratio they will be inclined to allow you to take over, but may charge you new fees as though a new loan is being taken out.

Mark T. Peters · Answer

Someone needs to open a probate estate.  You may be paying for property that you have no ownership in.  If there is no will and your grandmother has children, they may be entitled to the property.  You need to talk with an attorney immediately.

John Palley · Answer

I have seen this situation go different ways. I have seen some mortgage companies who allow the relative to assume the mortgage and others will not. Also, I believe it's possible they could call the mortgage as due although that's doubtful unless it was a reverse mortgage.

Thomas Edward Gates · Answer

The mortgage company cannot demand payment earlier than what already is committed to. If you did nothing, but continued to pay the mortgage, no one is the wiser. You can expect that they will try to get you to refinance the loan. As a separate matter, you should have the home transferred to you by Personal Representative Deed.

Brian Haggerty · Answer

When your grandmother died, that gave the mortgage company the right to call the loan. However, they would probably rather have payments than the house, so they may not rock the boat. You're not on solid ground continuing to pay, as you could get years down the line and still have the loan called. Best to get your refinance in order, and then tell them.

Victor Waid · Answer

You need to talk with mortgage company for an answer to your question.

Christine James · Answer

You will likely have to refinance. It depends on the company. If you are the sole heir and can refinance, I suggest doing so. If you continue to pay the mortgage and their are other heirs, you will not get money back from them once they come forward.

Erven Nelson · Answer

So long as you keep making the mortgage payments, the lender probably will not contact you. But, you should think about the title to the house. Unless you do something, the title will remain in your grandmother's name, but owned by her estate. The other heirs may not agree that you should have the house even after you pay for it. If the title is in joint tenancy, the surviving owner should file an affidavit to update the title.

Jeffrey Strickland · Answer

The question provides very limited information. The mortgage company will likely accept payments, at least for a little while. It knows or will know that the owner is deceased, and this will impact its actions. Who will ultimately own the property will determine what Options you have. did your grandmother have a will, and if so, who are beneficiaries. if no will, the state's laws determine who receives her net assets. if you will not be ultimate owner, why would you want to pay the ultimate owner's mortgage debt. You need counsel to guide you through these issues.

Thomas Phipps · Answer

I would tell them.  They may find out anyway.  And you may be able to refinance at more favorable terms.

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