Information & Advice on Mortgage Probate
My mother passed away Sept. 2006 and refinanced her house I believe that same year. Can a bank follow up with her children?
My mother past September 19, 2006 and refinanced her house I believe that same year. My brother received a letter from Wells Fargo that if they don't get $1500 by the 27th of this month, they will proceed with foreclosing. We are trying to keep the house and would like to know how we can save it.
You do not mention in your question how much equity you and your siblings have in your late mother's home, or whether or not ownership issues have been resolved through probate. (Follow the link I just mentioned to learn more about the probate process.) If you and your siblings have been declared the rightful owners of the property by the courts, and if you have enough equity in the property to allow for a refinance loan, then refinancing the current mortgage on the home may be a good option to explore. If you qualify, a refinance loan could bring the delinquent loan current and end the threats of foreclosure. A refinance may also lower the interest rate and provide a longer loan term, thereby lowering your monthly loan payments, which could make it much easier for you and your brothers to keep up with the mortgage payments.
If you want an introduction to pre-screened mortgage lenders, Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the Free Mortgage Refinance Quote page and find a loan that meets your needs.
With the current tightening of the mortgage market, you may have a difficult time obtaining a refinance loan, especially if you have had past credit problems. The only way to determine whether or not you will qualify for a refinance loan is to apply for a loan with several different lenders and/or brokers. Not only will these mortgage professionals be able to tell you whether or not your currently qualify, but if you do not qualify, they can tell you what aspects of your financial situation are causing you problems, and make suggestions about how to improve your chances to qualify for a loan. If you would like to read more about mortgage refinance loans, I encourage you to visit the Bills.com Home Refinance Resources page. If you enter your contact information in the Bills.com Savings Center at the top of the page, we can have several pre-screened mortgage brokers contact you to discuss the loan options available to you.
If addition to exploring refinance options, you should contact the mortgage lender, Wells Fargo, to discuss what assistance, if any, they can offer to help your family retain ownership of your late mother's home and prevent foreclosure. Frequently, lenders will allow borrowers to repay the delinquent mortgage balance over time, or even move the delinquent amount to the end of the loan term. What assistance is available depends entirely on the lender, so you must contact the lender as soon as possible to explain your family's financial situation and request a repayment play to prevent foreclosure. Before most lenders will agree to this type of arrangement, they will want to verify that you will be able to make your future mortgage payments as they come due, as their assistance with the delinquency will not change your obligation to continue making your regular mortgage payments.
If you and your brothers find that you cannot refinance or afford the current mortgage payments on the home, you may want to consider selling the property to repay the mortgage and cash out any equity you have in the home. If you are unable to make your future mortgage payments, the lender may foreclose on your home, which could cause you to lose the equity your mother worked to build in the home. Selling the home would generally be preferable to allowing the property to go into foreclosure.
Consult With a Lawyer
Because you and your brothers inherited this property was inherited together, I encourage you to consult with a probate attorney in your state to assist you in resolving any outstanding ownership issues. An attorney may also be able suggest alternative ways to resolve the mortgage delinquency and could also assist you in distributing any proceeds if you decide to sell the home. If you do not already have an attorney assisting you with the disposition of your late mother's estate, find one by contacting your state or county Bar Association's attorney referral service — find your state bar online or in your local phone book.
I wish you the best of luck in resolving the delinquency on your late mother's home.
I hope information I have provided helps you Find. Learn. Save.
Best,
Bill