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? 7 Answers as of January 24, 2013

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.

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Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
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.
Answer Applies to: Arizona
Replied: 1/24/2013
Law Office of Peter Holzer | Peter Holzer
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).
Answer Applies to: California
Replied: 1/18/2013
Ken Love Law | Kenneth Love
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.
Answer Applies to: North Carolina
Replied: 1/18/2013
Frank Law Group, P.C.
Frank Law Group, P.C. | David E. Frank
A lender would not even begin foreclosure proceedings until 3-4 months after the loan is past due.
Answer Applies to: California
Replied: 1/18/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Foreclosure begins 6 months after default, so if you are less then 6 months, just send them a check.
Answer Applies to: New York
Replied: 1/18/2013
    Zales Law Office
    Zales Law Office | Nicholas C Zales
    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.
    Answer Applies to: Wisconsin
    Replied: 1/18/2013
    Bodow Law Firm PLLC | Ted Araujo
    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.
    Answer Applies to: New York
    Replied: 1/18/2013
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