does a bank padlock a house after death?

[luckydriver]

a friends elderly , likely dementia, relative, is saying if someone is single and lives alone that a bank padlocks the house the day after death and sells your assets and cars etc. i said thats insane, you can live in a foreclosed house for years after the procedure is started and certainly if the mortgage is paid on time they cannot enter the home.

[8ball]

10 hours ago, luckydriver said:

a friends elderly , likely dementia, relative, is saying if someone is single and lives alone that a bank padlocks the house the day after death and sells your assets and cars etc. i said thats insane, you can live in a foreclosed house for years after the procedure is started and certainly if the mortgage is paid on time they cannot enter the home.

Pretty much none of that is true. You have to have a mortgage for "a bank" to show any interest and even then, the bank moves slowly.

The laws regarding foreclosure, sheriff's sale, statuary redemption, etc. make it a lengthy process. 

 

[luckydriver]

7 hours ago, 8ball said:

Pretty much none of that is true. You have to have a mortgage for "a bank" to show any interest and even then, the bank moves slowly.

The laws regarding foreclosure, sheriff's sale, statuary redemption, etc. make it a lengthy process. 

 

 

i figured, it was a 90 year old making the crazy comments yet if you google, there are zero stories about this. zero!  so i knew it didnt happen ever.

 

i am curious about one thing, if an executor wants  to just give the house back to the bank is it just letting them know what you want and they do it.  value of the house wont cover the mortgage and there are no other assets to make up the balance of the mortgage.   the house is a disaster inside, no central heat for a decade. etc etc.

[8ball]

 In most cases, the homeowner would attempt a "Short Sale." However, if the homeowner is deceased, the house has no value, and the estate has no funds, you can inform the bank accordingly.

[luckydriver]

is there any case a bank locks up a house? assume someone dies today and is paid up with the bills. but then 30 days from now the mortgage is not paid and the bank already got notice that the person died.  will it even be locked up then?  and during foreclosure does a bank really lock up a house even?

[SeekerOfWisdom]

Some banks will change the locks once missed payments pile up AND an inspection determines the home is empty or abandoned. There’s a provision in most mortgages allowing them to do this as part of “preservation” of the collateral.