Mortgage and death in family...

[sbrennan007]

What is the name of your state? IL
My father just passed away last week and while trying to get his affairs in order we came accross 2 mortgages he had on a piece of investment property.

My question is this, my mother cannot afford to pay their current mortgage as well as the other 2 motgages on the other property and we are in the process of having the property appraised and put up for sale at this time. As my father just passed away last week, everything is up to date on the mortgages and nothing is late.

What is the best way to handle this situation? Do we contact the bank and let them know that my father passed away and that we are in the process of selling the property. Or do we not contact them and let them contact us? In either case, my mother won't be able to pay the mortgages on this property, but the sale of the property will more than cover the mortgages when the property is sold.

I'm trying to help my mother as best as possible, but have never been in a situation like this before.

At what point will the banks forclose on the property as everything is current at this point?

Thank you!

 

[CalifAtty-7]

What is the name of your state? IL
My father just passed away last week and while trying to get his affairs in order we came accross 2 mortgages he had on a piece of investment property.

My question is this, my mother cannot afford to pay their current mortgage as well as the other 2 motgages on the other property and we are in the process of having the property appraised and put up for sale at this time. As my father just passed away last week, everything is up to date on the mortgages and nothing is late.

What is the best way to handle this situation? Do we contact the bank and let them know that my father passed away and that we are in the process of selling the property. Or do we not contact them and let them contact us? In either case, my mother won't be able to pay the mortgages on this property, but the sale of the property will more than cover the mortgages when the property is sold.

I'm trying to help my mother as best as possible, but have never been in a situation like this before.

At what point will the banks forclose on the property as everything is current at this point?

Thank you!

My response:

Immediately file for Probate. Contact a Probate attorney today.

IAAL

 

[nextwife]

Doesn't the investnment property generate any rental income?

 

[sbrennan007]

No. I probably didn't state that correctly. This is a piece of property (land with an old farm house and barn) that my father and mother had as just a real estate investment. It was actually my grandfathers property that my father just kept.

Not to sound stupid here, but I have heard of "probate" but don't really know what it's all about and if it would/should apply in this case.

Thanks!