Can a mortgage company sue an estate regarding a foreclosure?

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Can a mortgage company sue an estate regarding a foreclosure?

My father (deceased) died a year ago. He left his house to his children, to be sold, and the profit split between us. He also signed onto the deed of my younger sister’s home. He’s not on the mortgage loan but he’s on the deed. My sister foreclosed on her home. My guess is the mortgage company/attorney can come after my father’s estate and there’s not much we can do. Would that assumption be correct?

Asked on July 23, 2013 under Estate Planning, Texas

Answers:

Nathan Wagner / Law Office of Nathan Wagner

Answered 8 years ago | Contributor

The mortgage company can foreclose on your sister's house, and if the house is not worth enough to pay off the loan, it can get a judgment against her personally for the remaining debt. But the mortgage company cannot go after from your father's other assets. It could only collect from your father's estate if he had signed a personal guaranty of your sister's loan or was a co-borrower on the loan. 


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