Legal Question in Real Estate Law in Pennsylvania

I can't say as I don't know what the woman signed if anything. Did the woman agree to be a co-borrower or a guarantor of son's debt? If the woman signed nothing and just put up the house, then the lender can take the house and can go after son, but can't go after the woman. However, if the woman agreed to guarantee the debt/acted as a co-signer or was a co-borrower, then the lender can take the house and may be able to go after the woman for a deficiency (unless the contract was limited to going after the house).

In a worst case scenario in which the woman is liable, she is 80 years old. It would depend on what other assets she has and where she lives. Social Security and retirement benefits are exempt from garnishment/levy. So if this is all that the woman has, the lender can sue but will not be able to recover anything. If the woman has assets that are at risk, she might have to weigh her options - it would be depend on the balance remaining on the loan after sale of the residence. There should be no need to file bankruptcy, but again, I don't know her situation or where she resides or what assets she has.

The woman should have the loan/collateral papers reviewed by an attorney specializing in consumer transactions. Then lawyer can assess the woman's situation and advise her as to the likely consequences.