Legal Question in Credit and Debt Law in Louisiana

I own 1/2 of my grandmothers estate, along with my mother. My mother defaulted on a loan and now the loan company wants to foreclose on the house. The house was not used as collateral, nor is it the mortgage company. (The house has been paid for for decades).

My question is: Are they allowed by law to do this? I thought they would have to foreclose on her property and not one that is jointly owned.

Thanks


Asked on 7/12/11, 1:14 pm

1 Answer from Attorneys
Martha Amanda Mandi Lucas Mandie Seale Lucas

The loan company cannot foreclose on an asset not specified as collateral for the loan. They can sue the debtor and receive a judgment which may entitle them to seize assets but this will have to proceed through court. They could force the sale if they ultimately receive a judgment allowing them to do so.

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Answered on 7/15/11, 4:36 pm


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