My Mother Passed Away

What is the name of your state (only U.S. law)? Florida

The house will have to go through probate. I met the bank and informed them I will go on making mortgage payments. They told me the process I must do is I have to wiite them a formal letter stating I live in home and wish to keep. They then pull my credit and if they allow me to keep I have to pay an assumption fee of 1% of loan balance. House is $20k underwater mortgage wise. I went bankrupt in 2002 and have re-established my credit and my Beacon 5.0 score is +650 and my Fair ISSAC 624. Once I get my life insurance money I will payoff a $10000 debt which will free me from a $514 debt payment. I would like to keep the house. My annual gross is only $26400 and the outstanding balance is $140K. I cannot imagine the bank wants the house back but The mortgage is almost half my monthly take home pay. My plan is to rent 2 vacant rooms which should bring in $500-$800 month. What are my chances on keeping home?. I telecomute out of home office and need to know where my housing situation will be.What is the name of your state (only U.S. law)?

Tell the bank that you intend to keep making the mortgage payments and do not intend to assume the loan. And that they should stick their credit check and their 1% in their ear. And, if they squeal, ask them if they have heard of the Garn – St. Germain Depository Institutions Act of 1982.

TITLE 12 > CHAPTER 13 > § 1701j–3
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(d) Exemption of specified transfers or dispositions
With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon—

(1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;

(2) the creation of a purchase money security interest for household appliances;

(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;

(4) the granting of a leasehold interest of three years or less not containing an option to purchase;

(5) a transfer to a relative resulting from the death of a borrower;

(6) a transfer where the spouse or children of the borrower become an owner of the property;...

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