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

Answers:

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.  


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