foreclosure

[Kim Hill]

Controls Delete Post
Kim Hill:

My parents passed away, there house was left to me, my name alone is on the deed....before the deed was put in my name, a loan was taken against the house (not for the full value),now, the bank would not let me make a payment on the loan and put the house in foreclosure....who owns the house? The loan said "non assumable", if they take the house, what about the deed? Can't afford an attny and I have talked to them with no progress.

[Jon Holdman]

If the house now belongs to you, you should be able to make payments on the loan. Your parents deaths (my condolences, by the way) may have transferred the property to you, but it doesn't wipe out the mortgage.

I'm not sure what you mean by "would not let me make a payment". If the loan is current, the lender will accept a payment. If you can show evidence the house now belongs to you, they should let you change the address on the loan to your address. You may have to provide the new deed and death certificates. This isn't really an assumption. Don't ask if you can assume the loan, they will say "no". Just tell them you've inherited the house and want to continue to pay on the loan. I have several mortgages that are in one name, but the name on the check I send them is different. The bank never refuses the payment!

Banks do sometimes refuse payments if the loan is in arrears. There will be some amount that is needed to bring the loan current, and they may refuse to accept partial payments. What are they saying? The loan cannot be current (i.e., up to date on payments) or they would not be foreclosing.

What is the house worth and how much is owed on the loan? The difference is "equity". If its positive and large, you may want to get help from an attorney. They bank does have the right to take the property if the loan isn't paid. If the house is underwater (more is owed than its worth), then you really didn't inherit anything. It may be easier to just let the lender take it than to fight.