Legal Question in Wills and Trusts in Maryland
Parent has always paid mortgage on house. Both parents and sister on deed. Both parents, sister and sister's two adult children, 28 & 30 live in the house. Loan in both parents name only. Mother deemed incapable, Dimentia. Will states the house goes to sister. $250,000 is owed on the house. The only source of income left is a small pension and social security. When Dad is gone, I am executor of will and have power of attorney for mother. Will the bank come after Mom's social security to pay the mortgage if sister doesn't pay?
1 Answer from Attorneys
If a mortgage is owed then yes, a mortgage lender can certainly seek payment from the remaining borrower. If the borrower cannot or does not pay and no one else does, the bank has the legal right to start foreclosure proceedings.
Besides taking back the house, whether a bank will "come after" a borrower's assets (social security or otherwise) is up to the bank but usually the lender has the right to seek something called a deficiency judgment if it gets back the house in foreclosure but the value doesn't cover the full debt.
While this response offers general information, you are encouraged to seek legal advice to answer any specific questions.
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