Situation:
In 2017, my dad passed away. He and my brother joint name for a home loan and signed the S&P together as joint ownership as well. My dad put in the house down payment while my brother will service the loan. My brother is a good paymaster and have not default any installment since day 1.

In 2017, we did not inform the bank that he has passed due to lawyer advise. There is MRTA insurance tied to the home loan however, the policy beneficiary is my brother and not my late father.

My late father’s will was executed in the way that my mother will inherit all assets and debts. My mom has been able to get all the other paid off property to change name over except this joint loan/house ownership. The Grant of Probate was also issued to my mom already.

To the bank, my dad is still alive.

What I want to do: Restructure the loan to enjoy lower interest rate and tenure which will require both joint owners to be present at the branch to authorize.

What I worry: After informing the bank, the bank wants us to settle the full outstanding amount before anything can be done or any other legal action towards my family.

Need /k advise on how to go about this sticky situation. Will be happy to know if my worry is invalid.