Avoiding Probate: Dealing with the Mortgage Company

The Situation

John passed away without a will. He owned a house in Illinois, and his only heirs are his two adult children, Lisa and Mark. They want to keep the house, but when they call the mortgage company, they hit a brick wall:

• The mortgage is still in John’s name.
• The bank refuses to discuss the loan, citing privacy laws.
• Lisa and Mark can’t access payment details or the remaining balance.

 
The Question

Since John has passed away, how can Lisa and Mark get the mortgage company to talk to them about the loan?

 
The Answer

Just because they’re John’s children doesn’t mean they automatically have the right to discuss his mortgage. Lenders require legal proof that someone has the authority to manage the estate before they’ll share information.

Most people assume this means going through probate—a long, expensive court process. But there’s a faster, easier alternative:

✅ A Bond in Lieu of Probate
Instead of opening a probate case, Lisa and Mark can use a bond in lieu of probate through a title company and their real estate attorney. This:

✔ Proves they are the rightful heirs without court delays
✔ Gives them legal authority to access mortgage details
✔ Allows them to decide whether to keep paying, refinance, or sell

By securing a bond in lieu of probate, Lisa and Mark can get the bank to acknowledge them as the new owners, without wasting time in court.

🔹 Next Up: What if the mortgage company still refuses to talk? We’ll cover the federal laws that force lenders to cooperate in our next post! Stay tuned.

💡 Need help claiming your inheritance without going to court? Deranian Law Group can guide you through the process.