Can a mortgage on an inherited house be called due and payable?

I inherited my father’s home 3 years ago; I have been living in it and paying the mortgage. He has a Will and it states I am to inherit the home. I contacted the mortgage company last month to assume the loan. However, they will not let me because I have no credit and discharged bankruptcy of 2 1/2 years ago. Will they call the loan due in full?

Asked on March 16, 2012 under Estate Planning, Michigan


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

I am so sorry for your loss.  First you have to know that most mortgages are no longer assumable.  That was for mortgages from a really long time ago. But in answer to your question here no, they can not call in the mortgage.  There are certain exceptions under the law to the acceleration clause - which makes a mortgage due and owing - and your situation is one of them.  So no, they can not call in the mortgage so long as you are making regular and on time payments.  Good luck.  

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.