A mortgage is due in full upon the death of the borrower. They have every right to foreclose, but banks already own more houses than they can handle. Be honest with them and agree to take over the mortgage. You will need proof that you inherited the house. That means a Will naming you as the heir and Executor of the Estate. If you don't have that, you need a lawyer ASAP.
Barkey - GardenArtist has pretty well nailed it for your answers.
I'd like to add that you need to get all the paperwork on the house. Look about for the last couple of years tax assessor statements. They go out in Oct or Nov for Jan payments. Look to see the name(s) and the assessed value. You have to pay these taxes too as tax assessor are unforgiving on taxes due even if there is a death. Also most counties have on-line records for all real property for a very nominal fee (like $ 4.00 for a Deed of Trust). You want to take the parcel # that is on the tax assessor bill to find all the documents attached to the house and pay the fees to get all these. (the parcel # is the key for real estate for most areas rather than the street address) You really need to have these to read & understand what the situation is on the property. There could be other old liens or earlier mortgages out there that will have to be cleared or lifted before the house can be transfer to your name (assuming that the current mortgage issue is resolved). Good luck.
Just to make sure I understand, and to clarify a few assumptions...
You and your parents probably held title jointly, with rights to the survivor of them (yourself). They're deceased; you're now making payments on the mortgage on which they're identified as borrowers.
If so, you should read the mortgage to determine, as FF suggests, if there's a due on death clause. There might also be a clause which requires notification to the mortgagee (lender) of the death of either or both of the mortgagors (borrowers).
Also check to determine if the mortgage can be accelerated (called and required to be fully due and payable) upon the death of the mortgagors.
And check what constitutes events of default if the lender isn't notified of the death of the borrowers.
What is your intent for the house? Do you plan to keep the mortgage current and remain in the house, or sell it? If the former, you do have the option of contacting the lender and advising of the situation, but it's likely you will be asked to assume the mortgage, so you should consider whether you want to do that if you plan to stay there.
If your parents had in their will that you will receive the house, I believe you can continue paying the mortgage until you are ready to sell said property. You should consult an attorney as to how the mortgage loan is written, some old loans could still have a due upon death clause.
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I'd like to add that you need to get all the paperwork on the house. Look about for the last couple of years tax assessor statements. They go out in Oct or Nov for Jan payments. Look to see the name(s) and the assessed value. You have to pay these taxes too as tax assessor are unforgiving on taxes due even if there is a death. Also most counties have on-line records for all real property for a very nominal fee (like $ 4.00 for a Deed of Trust). You want to take the parcel # that is on the tax assessor bill to find all the documents attached to the house and pay the fees to get all these. (the parcel # is the key for real estate for most areas rather than the street address) You really need to have these to read & understand what the situation is on the property. There could be other old liens or earlier mortgages out there that will have to be cleared or lifted before the house can be transfer to your name (assuming that the current mortgage issue is resolved). Good luck.
You and your parents probably held title jointly, with rights to the survivor of them (yourself). They're deceased; you're now making payments on the mortgage on which they're identified as borrowers.
If so, you should read the mortgage to determine, as FF suggests, if there's a due on death clause. There might also be a clause which requires notification to the mortgagee (lender) of the death of either or both of the mortgagors (borrowers).
Also check to determine if the mortgage can be accelerated (called and required to be fully due and payable) upon the death of the mortgagors.
And check what constitutes events of default if the lender isn't notified of the death of the borrowers.
What is your intent for the house? Do you plan to keep the mortgage current and remain in the house, or sell it? If the former, you do have the option of contacting the lender and advising of the situation, but it's likely you will be asked to assume the mortgage, so you should consider whether you want to do that if you plan to stay there.