Legal Question in Real Estate Law in Florida
An elderly woman, who is on a fixed income, co-signed her daughter's home mortgage loan, which is on an underwater property. If the daughter defaults on the mortgage loan, what is the risk to the elderly mother? Can her monthly income be garnished to recover the difference between what the property is worth and what is owed?
2 Answers from Attorneys
She is subject to a lawsuit to collect for the money owed. If they attempt to collect, she may be able to raise certain exemption issues.
It really depends on where her "income" is coming from and what other assets she owns. In FLA, Social Security and most pensions are not garnishable, but other sorts of income are. Also some of her assets (not her homestead) but other assets such as savings accounts, cars, others paid off assets could be levied and taken, but yes she could be sued, have a judgment placed against her and be responsible for the deficiency should it foreclose.
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