Federal law prevents them from acting to foreclose or accelerate this loan, as long as it is current. They can still force her to pay the balloon, however, so that is something she will need to be aware of. She should stand her ground, and if they persist, she may need to have a lawyer send them a strongly worded letter, reminding them of the law.
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If the house was in joint names the Will did not need to be probated. Your Mom owns it free and clear. I am not an expert on mortgage finance, but I am well aware that banks make claims all the time that they can't legally pursue and the regulators let them get away with it. If a few of these folks were thrown in jail, they would be more careful. Your Mom's concern should be the balloon that is coming due. She should be looking into a refinance now. Wells Fargo is telegraphing that they won't be interested in offering another mortgage.
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It sounds fairly complex and a consultation with a probate/real estate attorney is certainly in order. I would be happy to discuss it with you.
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There are lots of questions that need to be asked before any advise is given. Did your mom predecease your dad? Were the married at the time the mortgage was given. Was the will ever probated? Who are the heirs of the survivor? Were there any other names on the deed? Etc., etc., etc.. The mortgage is due at the end of the balloon period and there is always the question of whether the mortgage was valid in the first place. Call a lawyer with experience in these areas of the law.
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