Legal Question in Wills and Trusts in North Carolina

i am sorry but your post is unclear to me. Why would the disabled person foreclose unless the disabled person was the seller who financed the property and the buyer has not paid? Why would the other owner foreclose? The other owner also would not be financing the sale of the property. Do you mean that the disabled person and someone else own property, cannot pay the mortgage and the lender is foreclosing?

If the lender forecloses, then the primary lender any anyone else can bid at the foreclosure sale. The highest bidder wins, usually the lender itself. Any excess funds (there usually is not any) would go back to the property owner. If less money is received, then the lender is owed a deficiency. Whether they will sue or not to collect the deficiency is the question and depends on the circumstances of each property owner. If one of the owners is disabled and getting benefits, my best guess is that a lender would not be likely to sue. You will receive a 1098 or 1099.

Property value tells me nothing. What is the mortage on it. How much is owed? How far behind are you? Is there an prospect of getting caught up? Have you looked into filing bankruptcy? A chapter 13 will allow you to get caught up, but you have to have the ability to pay on your mortage once the banmruptcy is done.

Why would a foreclosure affect one's entitlements to benefits? The disabled person will still need a place to live and will have to pay rent somewhere rather than a mortgage payment.

Try reposting your question with more facts or else see a foreclosure attorney.

In lieu of foreclosure, have you explored other options? There are government programs available for modification of thge mortgage and since the disabled person has some income coming in from monthly benefit checks this may be an option. If not, what about attempting to sell the property? Is it worth more than its mortgaged for? If its worth less, have you looked into a short sale? Failing that, what about a deed-in-lieu of foreclosure? Is there only one mortgage?