Q: loans in moms name she died loan current deed in sisters name estate closed 68,000 bank now know she died help?
I had bad credit but just cleaned it up but score is still low. Mom died 7 yrs ago owing 68,000 on home equity line of credit, house is in sisters name and mom was the only one on the loan. Bank just found out she died and the estate has been closed cause house was not part of it. I live in the house and pay everything and its all current. Can they foreclose on me? IS there a time frame they have to collect the debt. I was kept in the dark about all of this til now...What are my options? Can I assume the debt with out taking out my own loan? Need help please.
A: This is very confusing if everything is current why would there be a need to foreclose? Generally, a home loan can be foreclosed on which would lead to an auction and the proceeds would go to pay the loan / all subordinate lien-holders (if any). The time to collect on the debt is 6 years in NY, that's measured from the time of the breach / default. I'd be happy to give you more specific advice, please feel free to email me directly.
A: When you say foreclose on you, the short answer is yes. The long answer is you are living in a house you do not own or have any lease or document letting you live there. You are a squatter under the law. If the loan is not paid, they will foreclose. The estate should have listed the loan as a debt and paid it. The right thing to do is re-open the estate to get this paid, or get your sister to give you the property or a lease or something, and then work out a deal on paying the loan. Legally, you are in a VERY precarious position.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
