Bank will not accept cash payments anymore

[Nancy6088]

What is the name of your state (only U.S. law)? AZ

My uncle passed away 3 years ago and had a mortgage on his house. He willed the deed to his 3 children. His son has been living in the house and paying the mortgage (in my uncle's name) in cash every month. Now the bank has told him he must have a check from my uncle or a money order to pay the monthly mortgage. How can he continue to pay the mortgage or does he need to get a mortgage in his name? He does not speak to the other two siblings listed on the deed.

 

[justalayman]

Is there some reason cousin doesn't write a check?

Has anybody informed the bank your uncle has died? I kind of suspect they suspect uncle has died. In the end it won't make a difference since they cannot enforce a due on sale clause as there is law prohibiting it in this sort of situation but they cannot make that determination without the facts

 

[Nancy6088]

When my uncle passed the lawyer that probated the will told him he didn't have to notify the bank and could just make payments. As long as the mortgage was being paid the bank wouldn't care. He made the payments in cash because he really hates to write checks. He uses his debit card and online billing for everything.

 

[tranquility]

Ask why he cannot pay in cash any longer.

 

[Nancy6088]

the bank told him it is a new policy that they will not take cash payments from anyone who is not listed on the loan.

 

[tranquility]

the bank told him it is a new policy that they will not take cash payments from anyone who is not listed on the loan.

Go to the bank and ask if the "new policy" changes the terms of the mortgage. If so, why?

 

[justalayman]

A bank can set the terms of form of payment and they can refuse to accept cash, from anybody.

So, get a money order or purchase a cashiers check and pay it.

As to not notifying th lender of your uncles death; it isn't a matter of they won't care. The fact is given the facts as stated it doesn't matter if they care or not but there are reasons to inform them of your uncles death and the three heirs inheriting it.

 

[tranquility]

A bank can set the terms of form of payment and they can refuse to accept cash, from anybody.

What makes you say that? Is that a standard clause in most mortgage contracts? "Borrower must do whatever the lender says to pay the money back, including jumping up and down three times and turning around and touching the ground."

Is the limit what is reasonable? Is the limit what was in the contemplation of the parties? Or, would the limit be specifically spelled out in the contract?

 

[justalayman]

What makes you say that? Is that a standard clause in most mortgage contracts? "Borrower must do whatever the lender says to pay the money back, including jumping up and down three times and turning around and touching the ground."

Is the limit what is reasonable? Is the limit what was in the contemplation of the parties? Or, would the limit be specifically spelled out in the contract?

The only entities in the country required to accept cash are governmental offices. Every private entity can determine what they will accept as payment.


You may want to check a few stories about how Chase bank and others are in fact limiting the use of cash.

http://www.cleveland.com/business/index.ssf/2014/02/chase_bank_stops_accepting_cas.html

There are many stories where banks are refusing to accept cash such as that.

 

[LdiJ]

When my uncle passed the lawyer that probated the will told him he didn't have to notify the bank and could just make payments. As long as the mortgage was being paid the bank wouldn't care. He made the payments in cash because he really hates to write checks. He uses his debit card and online billing for everything.

Then tell him to pay online.

 

[tranquility]

The only entities in the country required to accept cash are governmental offices. Every private entity can determine what they will accept as payment.


You may want to check a few stories about how Chase bank and others are in fact limiting the use of cash.

http://www.cleveland.com/business/index.ssf/2014/02/chase_bank_stops_accepting_cas.html

There are many stories where banks are refusing to accept cash such as that.

http://www.federalreserve.gov/faqs/currency_12772.htm

Paying on a mortgage is not paying for a service. It will be interesting to see how the Chase story comes out.

 

[justalayman]

http://www.federalreserve.gov/faqs/currency_12772.htm

Paying on a mortgage is not paying for a service. It will be interesting to see how the Chase story comes out.

From your link

This statute means that all United States money as identified above is a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person, or an organization must accept currency or coins as payment for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law which says otherwise.

it says; goods or services.

As I said; a private entity is not required to accept cash. A bank is a private entity obviously. It is less and less unusual for a bank to refuse to accept cash from a non-customer for anything. It is their option. They can accept it or not and they can place rules on what they will accept if they do accept cash. That is one reason a person cannot pay a utility bill or buy a car with pennies if the owed party chooses to not accept such an attempt.

Only the government is required to accept cash and even there there are times when they can refuse it.