Will the mortgage lender call in the loan and make my mother reapply or does the loan stay status quo? 5 Answers as of February 20, 2015

My grandmother and mother are both on the note for the mortgage of our home. My grandmother has passed away, and my mother is the beneficiary of the estate.

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James Law Group
James Law Group | Christine James
No they will not, but your mother should speak with an attorney about the process of transferring it into her name when she is ready.
Answer Applies to: California
Replied: 2/20/2015
Law Office of Patricia A. Simmons
Law Office of Patricia A. Simmons | Patrica A Simmons
If both your mother and grandmother were on the mortgage as co-borrowers, your mother will not need to reapply for the mortgage. How was title held to the property? Were your mother and grandmother joint tenants or tenants in common? This along with the total value of the real property and your grandmother's estate, will determine whether or not your mother will need to do a probate to have the 100% interest put into her name.
Answer Applies to: California
Replied: 2/20/2015
Law Ofices of Edwin K. Niles | Edwin K. Niles
If you don't notify them, how would they even know?
Answer Applies to: California
Replied: 2/20/2015
Law Offices of George H. Shers | George H. Shers
What the lender does is up to it. Since there has been a change in the number of people agreeing to pay the loan, they might want to make some change, especially if your grandmother was actually paying any significant part of the monthly payments. They will not know of her passing until someone files a notice of her death with the local assessor's office, which, if you are in California might trigger a reassessment of the value of the house to its current value [only your grandmother's share should be reassessed but they will probably do it for the whole house]. Also, for the property to be solely in your mother's name, your grandmother's estate must be probated, unless her interest is below a certain amount. You should seek out a local probate attorney for a no charge initial consultation to see what must be done. You may be able to do it yourself and save a considerable amount of money.
Answer Applies to: California
Replied: 2/20/2015
Law Office Of Victor Waid
Law Office Of Victor Waid | Victor Waid
Lender doesn't care who died, as long as the payments are paid on time.
Answer Applies to: California
Replied: 2/20/2015
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