If I co-signed on myrecently deceasedmother’s mortgage butI can’t afford to take over th payments that she was making, what are my options?
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If I co-signed on myrecently deceasedmother’s mortgage butI can’t afford to take over th payments that she was making, what are my options?
Her home is a modular on top of a concrete basement but is in a small “lake” community where nothing has sold in a few years. About $50,000 is still owed on her mortgage. My only real assets are a house that I own 1/2 of (still owe $100,000, and listing it for $138,000) and 1/2 of a damaged 8 year old car(still owe $1200).
Asked on January 6, 2012 under Real Estate Law, Missouri
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you co-signed on the loan for a home for your deceased mother, you need to find out if the loan was purchase money or not. If the loan was purchase money, then the lender most likely can only foreclose on the property secured by the loan and will not be able to sue you or your mother's estate for any deficiency. This answer presumes that you state has anti-deficiency legislation.
I suggest that you consult further with a real estate attorney on the subject. If the property is located in California, you might consider selling it in a short sale. If the first lender accepts any money in the short sale, it cannot bring a lawsuit for a deficiency against the borrowers.
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