Q: no will and parents are deceased is it legal for my sister to continue paying mortgage under my mother's name for 3yrs?
A: Not really. The bank should be advised of your parents death and you and your sister are under the rules of intestacy most likely the owners as tenants in common of the property. If you want to sell it you should start an administrative proceeding to get letters of administration in your name and then list it for sale.
A: Anyone can pay a mortgage and it is "legal". She can pay mine too. Whether she gets any rights in the property is another issue.
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