Rights when you inherit or receive a home with a mortgage
12 C.F.R. § 1024.36(i)
In plain words
If you got an ownership interest in a home from a family member — for example after a death or divorce — you can ask the servicer to confirm you as a "successor in interest." The servicer must tell you in writing what documents it needs. Once confirmed, you are treated as a borrower for servicing rules, so you can get information and apply for help.
Who is protected
People who received an ownership interest in a mortgaged home from a borrower, such as heirs, surviving spouses or ex-spouses.
When it applies
- Covers most first and second mortgages on a home. It does not cover home-equity lines of credit (HELOCs).
What you can do
Ask to be confirmed as successor in interest
Write to the servicer with the name of the borrower you received the home from and the loan or property information. Send the documents it asks for (for example a death certificate, will, or divorce decree).
Open the tool
Honest limits
- Being confirmed does not make you personally liable for the loan unless you assume it, and it does not guarantee a modification.
- Small servicers are exempt from some of these policy requirements.
- This is general legal information, not legal advice, and it does not promise any result. A HUD-approved housing counselor or a lawyer can look at your facts.
The law
- Federal regulationRegulation X — potential successors in interest
12 C.F.R. § 1024.36(i)
Exact part: (i)
What it says: A servicer must tell a potential successor in writing which documents it needs to confirm the person's identity and ownership interest.
Read the official texthttps://www.ecfr.gov/current/title-12/part-1024/section-1024.36#p-1024.36(i) - Federal regulationRegulation X — confirmed successors are borrowers
12 C.F.R. § 1024.30(d)
Exact part: (d)
What it says: A confirmed successor in interest is treated as a borrower for the escrow and servicing rules.
Read the official texthttps://www.ecfr.gov/current/title-12/part-1024/section-1024.30#p-1024.30(d) - Federal regulationRegulation X — servicer policies for successors
12 C.F.R. § 1024.38(b)(1)(vi)
Exact part: (b)(1)(vi)
What it says: Servicers must have policies to communicate with potential successors and confirm them promptly.
Read the official texthttps://www.ecfr.gov/current/title-12/part-1024/section-1024.38#p-1024.38(b)(1)(vi)
Court cases
- Homeowner lostSame topicLage v. Ocwen Loan Servicing LLC
Lage v. Ocwen Loan Servicing LLC, 839 F.3d 1003 (11th Cir. 2016)
a servicer's duty to evaluate a loss-mitigation application depends on its being submitted more than 37 days before the sale date scheduled at that time
- Homeowner lostSame topicGresham v. Wells Fargo Bank, N.A.
Gresham v. Wells Fargo Bank, N.A., 642 F. App'x 355 (5th Cir. 2016) (per curiam) (unpublished)
the federal dual-tracking bar applies only when the servicer receives a complete loss-mitigation application more than 37 days before the foreclosure sale
- Homeowner wonSame topicRenfroe v. Nationstar Mortgage, LLC
Renfroe v. Nationstar Mortg., LLC, 822 F.3d 1241 (11th Cir. 2016)
a servicer that answers a borrower's written request without a reasonable investigation may be liable under RESPA when the borrower alleges resulting damages
- Homeowner wonSame topicJesinoski v. Countrywide Home Loans, Inc.
Jesinoski v. Countrywide Home Loans, Inc., 574 U.S. 259 (2015)
a borrower exercises the Truth in Lending right to rescind by notifying the lender in writing within three years, without needing to sue within that period
- Homeowner wonSame topicMarais v. Chase Home Finance LLC
Marais v. Chase Home Fin. LLC, 736 F.3d 711 (6th Cir. 2013)
a borrower who alleges actual damages, such as added interest, caused by a servicer's deficient response to a qualified written request states a RESPA claim
- Homeowner lostSame topicWhittier v. Ocwen Loan Servicing, L.L.C.
Whittier v. Ocwen Loan Servicing, L.L.C., 594 F. App'x 833 (5th Cir. 2014) (per curiam) (unpublished)
a RESPA claim against a servicer fails without evidence of actual damages caused by the violation
Related rights
Get information from your servicer (request for information)
12 C.F.R. § 1024.36(a)
You can ask your servicer in writing for information about your loan — for example your payment history, who owns your loan, or how your escrow was figured. The servicer must confirm it got your request within 5 business days and answer within 30 business days. If you ask who owns your loan, it must tell you within 10 business days.
Read this rightA fair, on-time review of your application for help
12 C.F.R. § 1024.41(b)(1)
When you apply for help (like a loan modification), your servicer must tell you within 5 business days whether your application is complete and what is missing, if you applied 45 days or more before a sale. If your complete application arrives more than 37 days before a sale, the servicer must review you for every option it has and tell you its decision in writing within 30 days.
Read this rightNo discrimination in housing or home loans (Fair Housing Act)
42 U.S.C. § 3604(a)–(b)
It is illegal to discriminate in selling, renting, or financing a home because of race, color, religion, sex, disability, familial status (having children), or national origin. This covers mortgage lenders and servicers too — for example, in who gets offered a loan modification and on what terms. You can file a complaint with HUD within 1 year or go to court within 2 years.
Read this rightA servicer team assigned to you
12 C.F.R. § 1024.40(a)
By the 45th day after you fall behind, your servicer must assign staff to help you. Those people must be reachable by phone and must be able to tell you your options, what documents are missing, the status of your application, and the deadlines that apply.
Read this rightEarly contact and help information when you fall behind
12 C.F.R. § 1024.39(a)
When you miss a mortgage payment, your servicer must try to reach you live (by phone or in person) by the 36th day of the delinquency and tell you about options to avoid foreclosure. By the 45th day it must send you a written notice explaining loss-mitigation options and how to get help, including housing counselors.
Read this rightNo discrimination in credit, and the right to know why you were denied (ECOA)
15 U.S.C. § 1691(a)
A creditor may not discriminate against you in any part of a credit deal because of race, color, religion, national origin, sex, marital status, age, receiving public assistance, or using your consumer-credit rights. If a creditor denies your completed credit application, you are entitled to a statement of the reasons.
Read this right