What to do when a PHH Mortgage account holder dies

A successor in interest is someone who received an ownership interest in the mortgaged property because of the borrower's death - for example through a will, intestacy, or a joint tenancy. Under CFPB Regulation X (12 CFR 1024.30-1024.41), once the servicer confirms you as a successor in interest, you are generally treated like a borrower for receiving loan information, making payments, and applying for loss mitigation, even before you formally assume the loan.

No. The Garn-St. Germain Act (12 U.S.C. 1701j-3(d)) lists transfers that are exempt from due-on-sale enforcement, including a transfer to a relative resulting from the borrower's death and a transfer by devise, descent, or operation of law on the death of a joint tenant. Those transfers cannot trigger the due-on-sale clause, so the lender cannot call the loan due solely because of the death if you fall within these protections.

Generally a certified copy of the death certificate, the loan number and property address, and your government-issued photo ID. An executor or administrator provides certified Letters Testamentary or Letters of Administration. A successor in interest provides proof of the ownership interest, such as a recorded deed, the will, or a court order.

A reverse mortgage (Home Equity Conversion Mortgage, serviced under the Liberty Reverse Mortgage brand) becomes due and payable when the last surviving borrower dies or no longer lives in the home. Reverse mortgage accounts use a separate login portal and support line. Contact that line promptly, because heirs have a limited time to respond to the due-and-payable notice and decide whether to repay the loan, sell the home, or let the lender take the property. An eligible non-borrowing spouse may qualify to defer the due-and-payable status under HUD HECM rules.