can checking acct be forced to pay for any outstanding debt if there is a foreclosure

UPDATED: Oct 1, 2022

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can checking acct be forced to pay for any outstanding debt if there is a foreclosure

When we applied for the mortgage for our home we did not know about the new rule that you have to have $3000 in bank to qualify. We did not but I have a joint account with my mother and she agreed to allow us to use it as part of the qualifying process. We are years into loan and it was bought by another mortgage company. If we contemplate foreclosure I want to make sure they cannot go after any monies in an account that was used for qualification.

Asked on October 4, 2017 under Real Estate Law, Georgia


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

It depends on the terms of the agreement(s) (e.g. the mortgage agreement) that was signed. At law generally, there is no inherent right to withdraw money from someone's bank or checking account for a debt, default, in the event of a foreclosure, etc. However, you could agree contractually to allow this to be done; therefore, you need to review the documentation to see what you agreed to.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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