My dad, a Floridian, died leaving a mortgage which is in foreclosure. As his children, are we liable for the debt?

Question

None of us have co-signed anything or agreed to be responsible for any of his debts. Looking at a copy of the loan agreement, there is no guarantor - co-signer on the contract. Wachovia Bank, National Association Retail Credit Services has contacted us by phone & mail trying to get someone to assume the debt & none of us is interested in the property or assuming the debt & they have been told that repeatedly. Wachovia Bank, National Association Retail Credit Services has filed a civil suit against us as well as our spouses to collect all monies associated with the foreclosure process, back taxes & all legal fees incurred by them trying to make us assume the debt. I have 1 sister & her husband that live in Florida. The rest of us live in Texas. If we don't respond properly within 20 days, we may lose the lawsuit and they will seize our monies, wages, & properties without further notice. I guess this falls under Civil Litigation since we have been served with Civil Action Summons.

Terrence H Thorgaard · Answer

No, you are not responsible.  If they foreclose, the court would give them an "in rem" judgment, ordering a sale of the property.  If the proceeds of the sale are not as much as the amount owed, they could not seek a deficiency judgment from you.

Charles M. Baron · Answer

First, regardless of each party's rights, those who have been served with a summons and complaint must file with the court (and send to the plaintiff's attorney) either a response to the complaint or a motion for extension of time to respond.  In order to obtain a reliable legal opinion on your issue, you must immediately consult a Fla. attorney for the attorney to review the complaint and other documents and to verbally discuss the background information.  You should not rely on any on-line answers.  Generally, in the type of situation you describe, the lender forecloses on the property, and if the property then sells for a price that is less than the balance due on the mortgage, the lender may assert a claim in the probate court against the estate of the deceased owner.  They might be adding you and your relatives to the lawsuit as defendants just to be certain that any interest you might claim in the property is foreclosed out.  But, again, you must have an attorney review the documents in order to determine your rights and obligations.

Bruce Alexander Minnick · Answer

You should immediately search for a lawyer using the Find A Lawyer tab at the top of this page. It is much easier to respond to a complaint and then defeat it than it is to try to undo a default final judgment.

Q: My dad, a Floridian, died leaving a mortgage which is in foreclosure. As his children, are we liable for the debt?