Who has the responsibility for a mortgage loan responsibility when the borrower dies?

Get Legal Help Today

 Secured with SHA-256 Encryption

Who has the responsibility for a mortgage loan responsibility when the borrower dies?

My dad passed and he was the only person listed on the mortgage. The house and land was just listed in my mom’s name. The mortgage company stated they are putting the house in foreclosure proceedings. They stated they do not refinance anymore. We do not know where the original paperwork for the loan is. The company stated even though she is power of attorney and executive of the estate, that was closed by probate, they aren’t able to give her alot of information since she is not on the loan. What are her

options?

Asked on May 2, 2016 under Real Estate Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

When the sole mortgagor (the borrower) dies, the loan comes due. The lender does not need to refinance the loan, but can foreclose if the loan is not paid. The estate can, however, pay the loan off in full (if it has the funds to do so and the executor deems that in the estate's and heirs' interests); the executor should be able to get the payoff amount by sending the lender her authorization from the court (e.g. letters testamentary) to function as the estate's personal representatives. If the lender will not comply, she could bring a legal action to get this information from the; she would file in chancery or surrogates/probate court.


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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption