Can a bank force sale of a co-signer’s inherited property to satisfy a judgment?

UPDATED: Jun 23, 2012

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 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.

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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