How long before foreclosure proceedings start?

Question

My mother passed away in March and her mortgage hasn't been paid since then. My younger sister had been staying there until she could figure out what she was going to do (her and her 18 month old son! She is 18) She had some friends staying there with her but they did nothing but take advantage of her. (they have not paid her the money they said they would and have taken over the whole house instead of the "room" she was letting them rent) She has since moved into her boyfriends parents house. I have turned off all the utilities and advised the lender that my mother passed away and to take the house, but they still have not done so. And the "friends" have let their friends use the house and needless to say it is now ruined. I went there yesterday and it smells like death in there! The food in the fridge is rotted as well as fast food trash all over the place, rotting. They wrote on the walls and ..just basically trashed the place. When will the lender or whomever now owns the loan foreclose? (her loan was sold to another servicer about a month or so after her death, so I'm sure in the investors sale transaction, it could have slipped through the cracks as to it not being paid in months!) I've contacted the new servicer and advised them of everything, but as of today, the house is still open and being used. (it's being used as a hang out, I think, because nobody in their right mind could stand to live inside!) What else should I do if anything? Sorry to ramble on....

Answer 1

If your mother died, then it is not her house anymore.  Whose house is it?  Is it your Fathers? Your Sisters? Do you own it?

There is a lot that needs to be done.  Also, you should know that if you had people living in the home and shut off utilities you are now liable for a pretty stiff fine and damages in civil court to the free loaders.  

How much equity is in the home?  Are you sure letting it be foreclosed on is the right thing?  Was their insurance (such as PMI) that is covering the home?  You need to contact a probate lawyer and an estate lawyer to help you sort this out without losing out in a big way.  

Answer 2

Advising the lender was the right thing to do. Because of the mortgage crisis that is going on in the U.S. right now sometimes it is taking the lenders a little longer to foreclose on homes. Usually foreclosure proceedings begin 90 days after the last mortgage payment is made.

You may want to notify the local police dept. of the situation so if they see anyone in the house they will know that they are trespassing. As long as your name was not on the loan of the home you will can not be held responsible by the lender. However, depending on what kind of loan it was the lender may be able to come after your mother's estate (if one exists) for any financial loss they may incur. It sounds like a very sad situation and like your sister needs to find a better group of friends to hang out with. I wish you the best.