QUESTION
Can siblings of the deceased be held responsible for his unpaid mortgage?
Asked on Feb 10th, 2013 on Bankruptcy - Arizona
7 ANSWERS
Not unless they co-signed the mortgage. However, the mortgage goes with the property, so if you want to keep the property, you will either have to pay the mortgage, or refinance.
Answered on Feb 12th, 2013 at 8:05 PM
If you are not on the mortgage, then no you are not responsible.
Answered on Feb 12th, 2013 at 7:45 PM
Chapter 13 Bankruptcy Attorney serving Winston-Salem, NC
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Love and Dillenbeck Law
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No, the only way a person can be responsible for a debt is if they signed on to it. Now, the estate is still liable for the mortgage. If it is not paid, the bank has the right to foreclose.
Answered on Feb 12th, 2013 at 7:24 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Generally not, the asset and the liability are part of the estate unless there are co-owners and co-signers.
Answered on Feb 12th, 2013 at 7:19 PM
Bankruptcy Attorney serving Overland Park, KS
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Wellman Law LLC
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Siblings cannot be held liable personally for a debt they did not incur, in this case signing a Note. I presume none of you signed the Note or that changes the analysis of course. The mortgage company is ultimately entitled to proceeds from the property or possibly from the estate depending on what is done with payments to them. You probably need to seek the advice of local counsel if there's not already an attorney handling the estate. Under several scenarios there's something to lose or gain in how this is handled. For example, if there's a foreclosure there could be a resulting loss of equity or a larger claim against the estate.
Answered on Feb 12th, 2013 at 7:15 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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The only persons liable to pay a note and mortgage are those that signed the note or a personal guaranty of the note.
Answered on Feb 12th, 2013 at 7:11 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Not unless they signed the contract for the debt. Normally the estate is responsible, otherwise the lender can foreclose on the property.
Answered on Feb 12th, 2013 at 7:01 PM