What action might a lender take if they discover the borrowers are deceased and someone else has been making the mortgage payments?
That's difficult to say without knowing the terms of the
original contract and perhaps the way the property is held under
state law. The lender can accelerate the loan making the entire
amount owed due upon demand or demand the property be refinanced by
the present occupant(s) or other action. Another contributing
factor is how the property was partitioned under the state probate