Q: House has my brother on mortgage, my mom and my brother on deed. What happens if my brother stops making payments?
My parents bought the home in 1979. My late dad had an IRS debt from when I was a kid and was worried the IRS would get the house. My dad had an IRS agent that was a jerk and threatened to take the house. So my dad put the house in my older brothers name, which is the same as his, one is a Sr. and one is a Jr. My dad continued to make payments and claimed he had a contract for deed with my brother, but I have no idea what happened to the latter. In 2020, my brother had a warranty deed drawn up putting my parents on the deed, but leaving himself on. My brother told my dad that if he was on the mortgage, my brother also had to be on the deed, which is incorrect. Dad passed away in January of 2022, so now legal ownership/deed is brother/mom, still just brother on the deed.
My brother starting making payments after dad died. If my brother stops making payments, will they foreclose and force mom out or go after brother who is still the only only listed on mortgage?
A: If payments stop, the lender will eventually file a foreclosure and everyone who has a legal interest in the property will be named in the foreclosure suit. If it goes to judgment, The house will be sold at auction. If someone else buys the property, it will be to the buyer to allow the occupants to remain and pay rent, or to remove them. Only the person on the mortgage is liable for any deficiency.
Terrence H Thorgaard agrees with this answer
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