Q: I reside in a home that the owner has been deceased for 12 yrs although there's a mortgage I never paid it do I own it ?
The mortgage company never foreclosed on the property even though they knew of the owner's passing in 2011 I've been in here for 12 years I maintained the property I posted no trespassing signs all around the property I never made it a secret that I was here all the taxes are paid all the neighbors know that I own this house do I have a claim of adverse possession the mortgage servicer committed fraud by using the deceased owners social security number and date of birth to acquire a forbearance agreement and a loan modification without anyone's consent by default doesn't the mortgage servicer and lender become the owner of the house once the original owners passed away and they were advised to such and they were sent the death certificate proving of the death ?
A:
No, in most cases the mortgage servicer and lender do not become the new owner of a home when the borrower dies.
In most cases, the home passes to the heirs of the borrower (typically spouse and/or kids and/or grandchildren and/or siblings) subject to the deed of trust securing the loan.
A:
The lender who is the beneficiary of a deed of trust cannot "foreclose" on the deed of trust as long as all payments are made in a timely manner. The lender is not obligated to "foreclose" on the deed of trust as soon as a payment is missed, and often does not do so, although I have never heard of one waiting 12 years.
Once a lender has affirmatively invoked its right to accelerate the balance due on the loan, it has four years from the date of the notice of acceleration to foreclose; otherwise, its right to do so is barred by the statute of limitations. If the lender has not affirmatively invoked its right to accelerate the balance due on the loan, it has four years from the date the last payment is due under the loan agreement (i.e. the "maturity date") to foreclose; otherwise, its right to do so is barred by the statute of limitations.
While you are under no obligation to pay the loan due to the lender by the decedent, the lender can foreclose on its recorded deed of trust if the loan is not repaid and the statute of limitations has not passed. If the lender's statute of limitations has not expired, you should probably file an affidavit of heirship if you are the only heir of the decedent or a suit to quiet title if you are not an heir of the decedent, and refinance the home to payoff the decedent's loan.
The lender and mortgage servicer were under no legal obligation to foreclose simply because they were notified of the borrower's death and, in practice, usually would not do so. They would typically wait for the decedent's estate to be probated and to be contacted by the heirs of the decedent, although they typically would not wait 12 years without any payments being made on the loan.
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