Can a bank force sale of a co-signer’s inherited property to satisfy a judgment?
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Can a bank force sale of a co-signer’s inherited property to satisfy a judgment?
I’m on my son’s mortgage for a house that is in forclosure. I am inheritating a house in a few weeks. Can the bank force me to sell the inheritated home to satisfy the mortgage debt?
Asked on June 23, 2012 under Real Estate Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Not directly, unless either the second home provided additional security or collateral for the first home, or the two loans otherwise were with the same lender and the loan agreements allowed the lender to foreclose on any property mortgaged by a borrower with the lender in the event of a default.
However, if the bank gets a deficiency judgment (i.e. a judgment for any unpaid balance remaining after the foreclosure), you would be liable for it, since you are on the mortgage. If that amount is not paid, the bank could put a lien on any other property you own, which could encumber it and prevent you from later selling or transferring it without paying off the lien amount.
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