Tuesday, January 26, 2016

Can bank go after children of estate?


A friend just lost her parents (they died just 5 months apart) who had taken out a reverse mortgage the year before. Her brother transferred / withdrew the funds from the estate just before their death as the housing market was tanking (2012) and he planned to walk away and give the house back to the bank. My friend thinks her brother is "very smart" and doesn't realize it was also unethical but whatever. The bank then refused to take the deed and tried going after each of the children with summons and the brother said don't worry it's just procedure. Finally the bank took the house but my question is can the bank go after the children for deficiency (house has not yet been sold) as a regular foreclosure can do? Loan was in estate name but money was transferred to brother's bank account so easily tracked.

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