Legal Question in Real Estate Law in Minnesota

Foreclosure Risks

My 75 year old mother has to stop working for medical reasons. She will move from Minnesota to Texas to live with us. The home she owns is in a depressed area and she cannot sell it for enough to cover the debt. Since she will not need to protect her credit rating, what other consequences would there be if she let the house go into foreclosure? Can they garnish her Social Security? Also, there is a line of credit secured by the property, how would that be effected. She is, also, concerned that if she were to pass away while still owner of the house, what liability would the heirs have?


Asked on 1/09/08, 4:32 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Foreclosure Risks

Unfortunately this happens all too often. When the 1st lien forecloses, the line of credit is wiped out. Both lenders could sue your mother for deficiency, but it is unlikely they will ever collect. Social Security can't be garnished under these facts.

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Answered on 1/10/08, 8:06 am


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