Can the attorney for a bank sue the homeowner if the mortgage was not signed by the homeowner but by the homeowner’s deceased parent?

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Can the attorney for a bank sue the homeowner if the mortgage was not signed by the homeowner but by the homeowner’s deceased parent?

The property was turned over by quit claim deed and the estate of the deceased parent was a no asset/tax purposes only estate. The child fell behind in payments and a foreclosure action was started with just naming the child on the summons, however the body of the complaint states the steps taken in the real estate transactions, offering the fact that the deceased parent was the sole signer on the mortgage and note.

Asked on November 16, 2016 under Real Estate Law, Connecticut

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The homeowner cannot be sued personally for the amount of the mortgage: that is, the child is not personally liable for a loan he or she did not sign. But the bank can sue to forcelose on the property if the mortgage is not paid or paid off (whether outright or by refinancing), because the property cannot be transferred (whether by quitclaim deed or by inheritance/probate or otherwise) without payng the mortgage; the bank's right to be paid, and therefore it's right to foreclose on the home if not paid, cannot be taken away by transferring the home. So the new homeowner can be named in a foreclosure suit and he/she can lose the home, but he/she should not be personally liable for any balance due on the loan.


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