Mortgage contracts are not revoked when the owner dies, and the trustee has the right to foreclose the mortgage at home when the property of the deceased can not pay the mortgage.

Communicate to the lender in writing

Although your communication with the lender frequently involves communications over the phone or in person, your correspondence should be registered. Start the process by sending a letter with a request for a receipt as proof of contact to the lender using certified mail.

Cover the balance to be paid out of the capital liquid assets

The safest choice for foreclosure is to pay off your past debt, and liquid equity assets are the easiest way to do so. Liquid assets can be converted into cash in a matter of days, typically including savings accounts, investment accounts, deposit certificates, stocks, bonds etc. If the property has ample liquid assets to cover the previous debt due, liquidate the property and pool the property management account’s proceeds.

Request a court order to allow ample time for the selling of illiquid assets

If the property does not have enough liquid assets to cover the previous due balance, you will need to sell the illiquid assets to pay off the debt. If the lender refuses to stop forfeiture, ask the prosecutor to obtain a court order to prevent forfeiture and allow a reasonable period to liquidate the land. The courts do not allow you to sell the property less than its fair market value merely to appease an unfair bidder, so you should have ample time to list and sell it.

Request an order from the court to give the property a reasonable period.

Houses in foreclosures are often sold well below fair market value, and if the bank does not make enough sales money to support the mortgage balance sheet, the bank can ask the capital stock to recover the difference. Start by applying for another court to give you enough time to search, list, and sell your home. If the first court order was overly generous, this might not be sufficient, but the court will typically give you a lot more time to sell your home than to sell your cars, jewelry, arts, etc. If a new court order or extension can not be obtained, the lender can proceed promptly and vigorously before another court order is released.