The deceased borrower and the daughter who kept the house

[Steve Hodgdon]

Once upon a time there was a borrower who took ill and gave his daughter power of attorney. Before he passed away he deeded the house to his daughter. 

Apparently, since the house belonged to the daughter, it was a no asset estate and probate was not opened. 

The daughter paid on the mortgage for about a year. The prior note owner accepted payments knowing that the borrower was deceased. 

Little ol' me bought the note last summer. The daughter defaulted. 

Straight foreclosure doesn't seem exactly right. Seems I could force a probate and look to sell the property to pay the mortgage. Daughter doesn't have foreclosure defenses, simply an eviction? Even though she holds title? 

I was afraid that I may be in an unsecured position, but our lien is prior to deed transfer. 

Daughter has asked for a new loan. We don't do that. Especially since she has stated insufficient income. 

How will my story end? 

Anyone have an Alabama attorney to recommend?

[Wayne Brooks]

Ther is No need for a lender to "open probate", Ever!  That is the heir's responsibility, if they want to sell/negotiate with legal authority.  In this case, the property Was deeded prior to death, so a probate would be totally irrelevant.....straight up foreclosure.