How do we walk away clean from my late mother’s highly mortgaged but valueless condo?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
How do we walk away clean from my late mother’s highly mortgaged but valueless condo?
My mother recently passed away. She had a large equity loan on her condo through her bank. Now the amount of the loan greatly exceeds the value of the condo. My sister and I are not co-signers on the loan or anything else; we are not on the deed for the condo. However, the condo is in her trust of which we are both included. How do we walk away from this clean without any legal or financial repercussions?
Asked on April 19, 2012 under Estate Planning, Nevada
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If the loan on your mother's condominium was "purchase money," meaning used to acquire it, most likely the state that the property is in has anti-deficiency laws where if the property is foreclosed upon there is no recourse as to the borrower even if it goes into foreclosure. In order to ascertain the status of the loan on the property you are writing about, you should consult with a Wills and trust attorney that practices real estate law.
You need to bring the original loan documentaiton, deed, and mortgage (trust deed) to the lawyer. If the loan is purchase money, then you can let the condominium go into foreclosure without any recourse to the trust that your mother set up.
Ascertaining the type of loan, "purchase money" or not for the condominium is the first thing that needs to be ascertained to try and resolve the situation you are writing about.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.