Hello, My Mother recently passed away and the house was Quit Claim Deeded t

This is one nasty lender you're dealing with.  With payments current, there's no way they should be bothering you about a cosigner to assume the loan.  A question, though...are you planning to keep the home for your own, sell it, rent it?  Do you reside there at present? They are correct if they're stating that the loan is due and payable in full, but they sure don't have much compassion.  If you have the ability to refinance, with or without a cosigner, I suggest you find a different lender to do busines with.  These guys are fools and not to be considered, in my view.  It might be a very good idea, also, to contact an FHA-approved mortgage counselor to get some free advice on this matter.

I was going to rent it until they told me it was going into Foreclosure so at present I have it on the market and I do not live there. This is actually a Federal loan.  Yes, you are correct they are fools and not very compassionate.  I indicated to them that this house was in my family since 1940 and that i have showed the ability to pay the loan, as I have been making payments on time. When this is all said and done i will never do business with this financial institution either and I will make sure that I put the word out to people in my community.  THey have also given me misinformation on several occasions for instance I was told two weeks ago that as long as I am current with the payment and have the house on the Market they would not start Foreclosure now last week was a different tune and now they will immediatally start foreclosure if I don't come up with a  co-signer.  Not very informed in their line of business!!  I have contacted my bank who are looking into other options for me. Do you know if the home does go into foreclosure will that show on my credit report?  Public record?  If so what is the best way to avoid it a Deed in lue of foreclosure?? Thanks!