You inherited the house and the default came with it
Inheriting a property with a mortgage in default is one of the more common calls we take, and one of the more fixable. Federal rules give successors in interest specific rights that many servicers do not volunteer.
What you might be thinking
- The servicer will not talk to me because I am not on the loan
- Probate is not finished yet
- I do not even know what is owed
All three come up on almost every call. None of them is a silly question.
What actually matters here
You have the right to be recognized
Federal mortgage servicing rules require servicers to have a process for confirming a successor in interest. Once confirmed, you are entitled to loan information and to apply for loss mitigation, even if you never signed the note.
Due-on-sale usually does not apply to you
Federal law generally prevents a lender from calling the loan due when property transfers to a relative on death. Servicers sometimes assert otherwise.
Probate and foreclosure run on separate clocks
A foreclosure timeline does not wait for an estate to settle. If there is a recorded default, it needs attention now rather than after probate closes.