bank foreclosure upon death of father / home equity loan

[markkow]

undefinedWhat is the name of your state? Illinois

My Wife's father passed away on June 19th, 2005. He had owned a house that was in trust and my wife was name as one of the trustee's in the event of death.
He had a home equity loan on the house so we notified the bank of his death and stated that we needed to sell the property to re-pay the home equity loan. We asked if we could continue monthly payments until the sale. After two weeks we didn't hear from the bank. My wife called them and they told us to contact their attorney. We contacted him and he stated that they were starting the foreclosure process. There was no default on the loan. All payments were current. We tried to make the next payment that was due but they refused to accept it.
My wife and I are now scrambling to come up with the money.
Is this legal? Can they foreclose without giving us a chance to pay the debt?
We received nothing in writing other than a letter of intent to foreclose from the banks attorney to our attorney?
Please help us with some advice. We've already paid two lawyers and they can't help us!!

[pty]

What did the attorneys you spoke with say?

I'm just guessing, but it sounds like there may have been a clause in the original agreement that gave them the right to accelerate the loan in the event of the death of the obligor.

My disclaimer--I AM NOT AN ATTORNEY.