My grandmother recently passed away and my mother is handling her trust. She had a small home equity loan for about $12k with a NY Credit Union. About 6 months ago she paid a large portion on the loan and the credit union showed she was paid ahead until 2012. Now that she is deceased the credit union is changing how that payment was applied. They are no longer allowing that large payment to go toward future payments. They also want $3000 to cover the last 6 months worth of payments or they will foreclose. My question is can they apply the payment one way and now learning my Grandmother is deceased change how the payment was applied and demand payments for the last 6 months? It seems like they are trying to scam the estate by foreclosing on a house that is worth $95,000. Will all the funeral costs my mother is afraid she will lose the house if she can't come up with the cash to pay the credit union. I'm wondering if they can legally do this?

If you have it in writing that the amount was applied to future loans, BUT>>

What are the terms of the loan, for the death of the borrower ?

But if you have statements from the bank, go to the bank and talk to the manager there in person with all of your documents and evidence

3 very important words for you. SEE A LAWYER 1 more ASAP
They can not change payments once a person has already made them or had an agreement with them. Tell your mother to get ALL of your Grandmothers bank statements for the past 3 years. ALSO get her to state everything they told her in writing! And why they feel that they can legally do this. Find ALL of your grandmothers bank statements she has kept herself. ASAP I have a feeling you are being screwed.

3 very important words for you. SEE A LAWYER 1 more ASAP
They can not change payments once a person has already made them or had an agreement with them. Tell your mother to get ALL of your Grandmothers bank statements for the past 3 years. ALSO get her to state everything they told her in writing! and why they feel that they can legally do this. Find ALL of your grandmothers bank statements she has kept herself. ASAP I have a feeling you are being screwed.



The fact that the Grandmother is deceased is going to make it very difficult to get a statement from her.

Without seeing the documentation no one can or cannot say what the bank can or cannot do. Why the bank feels it can legally do this is for the bank to explain (or not explain).

No one knows if anyone is getting "screwed" until the original documents are reviewed and the bank is asked the basis for its policy.