Is a lender obligated to talk to a court appointed executor?

Joe S.Pro Member

Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes

So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.

0 Reply

43 views

Most Popular Reply

Account Closed

Property Manager · Greensboro, NC · Member since 2025 · 16 posts · 6 votes

As someone who has just recently lived through this, the mortgage company would not talk to me without my letters from private court saying I was executor and administrator of my sisters estate. I was also the heir to her home so it was one stop for me but her will helped eliminate a lot of other bumps. I'd see who the estate was left to and they need to file with probate county where decedent lived. Good luck. As a real estate broker and loved one, this was a challenge. I'm in NC if you need advice.

2 Reply

See this reply in the discussion

8 Replies

Jump to latestLatest

Sort by

Account Closed
Property Manager · Greensboro, NC · Member since 2025 · 16 posts · 6 votes
1y
As someone who has just recently lived through this, the mortgage company would not talk to me without my letters from private court saying I was executor and administrator of my sisters estate. I was also the heir to her home so it was one stop for me but her will helped eliminate a lot of other bumps. I'd see who the estate was left to and they need to file with probate county where decedent lived. Good luck. As a real estate broker and loved one, this was a challenge. I'm in NC if you need advice.
2 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
1y
Quote from @Joe S.:

So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.

Yes and yes but it will probably require written documentation and the second one unlikely without the court's permission.
Podcast Guest on Show #243
Skyline Properties
View Page
1 Reply
Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Joe S.:

So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.

until that person is appointed - no they cannot talk to the person - the only person they can talk to is the borrower. Its a CFPB / FDCPA law - its on different than if you were on a loan and your wife was not - they cannot talk to your wife about it, unless you give specific permission.
Once its appointed, then yes they have authority to talk.
7e investments53 Reviews
Website View Page
1 Reply
- Joe S.Pro Member
  OP
  Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
  1y
  Quote from @Chris Seveney:
  
  Quote from @Joe S.:
  
  So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.
  
  until that person is appointed - no they cannot talk to the person - the only person they can talk to is the borrower. Its a CFPB / FDCPA law - its on different than if you were on a loan and your wife was not - they cannot talk to your wife about it, unless you give specific permission.
  Once it’s appointed, then yes they have authority to talk.
  Once they are appointed, can they do a POA for somebody to talk on their behalf?
  0 Reply
- Chris SeveneyBusiness Member
  Moderator
  Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
  1y
  Quote from @Joe S.:
  
  Quote from @Chris Seveney:
  
  Quote from @Joe S.:
  
  So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.
  
  until that person is appointed - no they cannot talk to the person - the only person they can talk to is the borrower. Its a CFPB / FDCPA law - its on different than if you were on a loan and your wife was not - they cannot talk to your wife about it, unless you give specific permission.
  Once it’s appointed, then yes they have authority to talk.
  Once they are appointed, can they do a POA for somebody to talk on their behalf?
  
  Yes, the lender typiically has a form they requireor a POA
  7e investments53 Reviews
  Website View Page
  1 Reply
- JD MartinBusiness Member
  Moderator
  Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
  1y
  Quote from @Joe S.:
  
  Quote from @Chris Seveney:
  
  Quote from @Joe S.:
  
  So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.
  
  until that person is appointed - no they cannot talk to the person - the only person they can talk to is the borrower. Its a CFPB / FDCPA law - its on different than if you were on a loan and your wife was not - they cannot talk to your wife about it, unless you give specific permission.
  Once it’s appointed, then yes they have authority to talk.
  Once they are appointed, can they do a POA for somebody to talk on their behalf?
  
  They should check with the court before going any further. It depends on your jurisdiction but your courts may not allow an appointed executor to assign their powers to someone else without permission as that is akin to just having the other person appointed, even with limited/revocable POA. It depends on the situation but in general courts look to an executor that is unbiased and has no finance stake in the outcome and that could be affected with a transfer of power.
  Podcast Guest on Show #243
  Skyline Properties
  View Page
  1 Reply
Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @Joe S.:

So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.

With proper paperwork, yes, of course.
1 Reply
Ken M.
Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes
1y
Quote from @Joe S.:

So a seller has reached out to me and said they have a property and they cannot get a payoff because the lender will not talk to them. They told me in about a week they would be the court appointed executor. So would the mortgage company be obligated to talk to the court appointed executor? Also could a court appointed executor appoint someone as their POA as well.

It sounds like a probate. If so, someone still has to make the mortgage payments and normally a lender will accept payments from a next of kin. A lot of lenders will allow a relative to continue to live in the property and make payments as they normally would.

A little trick is to take the statement, add 10% to the principal owing and send in the funds. That will pay off the loan. It will be an overage that the lender will issue a refund in the deceased's name that the personal representative will have the authority to cash.

I have bought several foreclosures that were actually probates that the heirs didn't know how to get through the system.

But, one of them does need to get appointed and there are steps that have to be followed.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.