Legal Question in Real Estate Law in Pennsylvania

Some clarification when you or anyone else borrows money for a house the lender gets to forms of security. One is a Mortgage which goes on record and is an agreement that says if the borrower doesn't pay back the money borrowed then the bank can foreclose on the property and try to get their money. The second is a promissory note that obligates the borrower to pay back the bank. This usually comes in to play when the bank doesn't make enough selling the house to cover the loan.

What the bank is asking is that your wife sign the promissory note. This would make her personally liable to pay the bank if the property ends up in foreclosure.

In essence the bank saying we don't think your son is a good enough risk to lend money to even with the property being there for security. If the bank doesn't think he's a good enough risk then maybe he should postpone buying a home till he is. Maybe he needs a bigger down payment maybe better credit or maybe just more income. He should work on qualifying before buying a home.

{John}