Can the mortgage company legally ask the deed holders remaining to pay? 6 Answers as of July 26, 2013

My mother in law in on deed, but not the mortgage. Brother in law was on the deed and has mortgage in his name only. Brother in law just passed away. I understand it will foreclose because wife and mother in law cannot pay, but legally are the remaining deed holders responsible for the loan? Are the deed holders responsible to satisfy any encumbrances on the property?

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The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
No, only persons who sign the note have to pay.
Answer Applies to: New York
Replied: 7/26/2013
Janke Legal Consulting | Bruce C. Janke
Assuming that the mortgage was the original purchase money loan, then the bank's remedy is limited to foreclosure and sale of the house. Nobody, whether they signed the promissory note or are on the deed, is liable for any deficiency (difference between sale price and loan balance). You don't say what the other encumbrances are, but if the house does not sell for a price high enough to pay them off, there may be personal liability for the deficiency.
Answer Applies to: California
Replied: 7/26/2013
Marc S. Stern
Marc S. Stern | Marc S. Stern
It is a fascinating question. If your MIL is not liable under the mortgage, her interest cannot be foreclosed. Once the BIL's interest is foreclosed, she will be a tenant in common with the mortgage company. What a mess.
Answer Applies to: Washington
Replied: 7/26/2013
Danville Law Group | Scott Jordan
It would not be illegal for the bank to ask the title holders to assume the debt. The title holders do not have to accept the offer and do not have to pay the mortgage. However, by not paying the mortgage, the bank can and probably will foreclose on the property. The title holders will then lose their rights to live in the house.
Answer Applies to: California
Replied: 7/26/2013
Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
It depends on the law of the state where the property is located. If in Arizona - no.
Answer Applies to: Arizona
Replied: 7/26/2013
    Durham Jones & Pinegar | Erven Nelson
    Only people who signed the promissory note and mortgage are responsible to pay the loan. On the facts you have stated, only the estate of the deceased brother in law would be responsible if the mortgage company were to foreclose and recover less than the amount owed. You could try to sell the house through the probate proceeding and ask the mortgage company to delay foreclosing.
    Answer Applies to: Nevada
    Replied: 7/26/2013
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