Will the bank take the home my father willed to us because we have poor credit?
There is too much I do not understand about the transfer of the house from your father to you and your sister for me to be able to give you a definite answer. I can tell you that in general,when someone inherits a house with a mortgage on it, that mortgage simply goes with the inheritance. The inheritors can continue to make the same mortgage payments as the prior owner did. I have never seen or heard of a bank demanding a new mortgage because of the inheritors' credit rating or poor credit.
But, as I said, I don't understand what's going on here. How did the bank learn that that your father had died.? Why do they want to know about the status of his estate? Did your father have any estate, aside from the house? Are there creditors of your father's who might want to come after the house to collect debts your father owed them? If there are, the transfer could be considered a fraud upon creditors. But why would the bank be concerned about a possible fraud, since it couldn't have been against the bank?
I'd proceed cautiously with the bank. Ask them why they want to learn about your father's estate, and proceed from there.
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