Legal Question in Wills and Trusts in Illinois

You should have an attorney review the trust that holds title to her home, and should review what other assets she has. Probably the attorney who put the trust together. If she co-signs a mortgage loan with you, she is a co-borrower and if she can't make the payments for you, and the property winds up being sold for less than the amount of the loan, the lender could seek compensation from any assets she has, which could include certain kinds of trusts. The attorney can give you a letter of opinion (for a fee probably) and if it turns out to be a bad opinion if there is a loss then it's the attorney's malpractice insurance that could come into play.

If your house has a fair market value that is not enough to pay the mortgage balance then there will be a "deficiency judgment." Illinois is a "recourse" state meaning the bank can come after the debtors (you and your mother) to collect the amount still owed after the house is sold.

However, as a matter of policy, many lenders don't. Also, some courts won't award a deficiency judgment if it is the debtors residence. Of course, it is not your mother's residence so this might not help her.

Have you considered a short sale instead of letting it go in foreclosure?

I highly recommend that you speak with an attorney who specializes in this especially since your mother is vulnerable. If you visit my website and call me I can refer to you to someone I know personally and is very good in this area. Go to www.legacylaws.com.

Good luck.