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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.


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