Obtaining mortgage information as an heir to an Estate can sometimes be difficult. Mortgage providers and servicers often make it surprisingly difficult to obtain information on a mortgages. However, there are federal laws and interpretative that give you rights as an Heir to mortgage information and can stop the “run around” by mortgage companies. Indeed, such laws arose from problems faced by heirs like you in obtaining mortgage information for deceased loved ones.
Obtaining Mortgage Information for a House Where You are an Heir
When a loved one passes away, their estate typically passes on to their heirs. As part of this process, the heirs may need to access information about any mortgages that the deceased held on their property. This information can be critical for the heirs to understand their rights and responsibilities regarding the mortgage. Fortunately, the Consumer Financial Protection Bureau (CFPB) amended their Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) mortgage servicing rules to ensure that heirs have access to this information.
Under the amended rules, mortgage servicers are required to provide certain information to heirs within a specific timeframe. Here’s what you need to know about the rights of heirs to obtain mortgage information under the CFPB amendments to its RESPA and TILA mortgage servicing rules.
Who is an heir?
An heir is someone who inherits property from a deceased person. This could be a spouse, child, or any other family member or person named in the deceased person’s will. Heirs may also be referred to as beneficiaries or legatees.
What information are heirs entitled to receive?
Under the amended rules, mortgage servicers are required to provide heirs with the following information within 30 days of receiving a written request:
- The name of the deceased borrower
- The account number of the mortgage loan
- The amount of the outstanding balance on the mortgage loan
- Information about any delinquencies or defaults on the mortgage loan
- Information about how to request a payoff statement for the mortgage loan
- Information about how to submit documents to show proof of ownership of the property or authority to act on behalf of the deceased borrower
How can heirs request this information?
Heirs can request mortgage information from the servicer by submitting a written request to the servicer’s designated address. The request should include the name of the deceased borrower and the address of the property securing the mortgage loan. Heirs should also include a copy of the death certificate and any documents that show proof of ownership of the property or authority to act on behalf of the deceased borrower.
What if the mortgage servicer fails to provide the requested information?
If the mortgage servicer fails to provide the requested information within 30 days of receiving the written request, the heir can file a complaint with the CFPB. The CFPB will investigate the complaint and take any necessary action to ensure that the mortgage servicer complies with the amended rules.
Conclusion
The Consumer Financial Protection Bureau has developed a set of rules that make it easier for heirs to obtain information that proved difficult to obtain in the past.
Losing a loved one can be difficult. Obtaining information on their mortgage after their passing should not be. Armed with the above information, you should now be able to readily obtain that information.
If you are still having difficulty in managing your estate or obtaining information for the administration of the Estate in Maryland, you can contact the Law Offices of Spence | Brierley to assist you at 410-823-5003.
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