2 people own home. 1 signs a deed so the other can borrow on it. They pass away and no more payments are made. Can the estate sue the borrower?

Asked by Babysister, High Point, NC Wed Oct 6, 2010

2 people own a home together (unmarried) She signs the deed for the laon but not the note. She passed away and the borrower stopped making payments and it was forclosed on. Can the estate of the deceased sue the other for property loss? and if so would they sue for 1/2 of what the forclosure brought or 1/2 of what the house was worth?

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Babysister’s answer
Babysister, , High Point, NC
Wed Oct 6, 2010
The house was owned before and was used along with another house to get a loan. Person 1 passed away. She was only on the deed and was only on the deed for 1 property. Person 2 is still alive and no payments were made after the death of person 1 other than what was paid from the estate of person 1.
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Crystal, , Greensboro, NC
Wed Oct 6, 2010
First and foremost, sorry for the loss of the peope involved. I second what Anna said. Your best bet is to consult w/ an attorney who practices in Real Estate. If you have any questions in regards to qualification moving foward in your Real Estate needs email me, I would be happy to assist. If you also need a good attorney for your question, I can refer one to you.

Crystal Davis
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Larry Story, Agent, Greensboro, NC
Wed Oct 6, 2010

Did both parties pass away. Your question is a little unclear. Say Party #1 is the person that you said signed the deed (so their name is on the deed) but she did not sign the loan documents so the loan is not in her name. Now Party #2 is the borrower and they stopped making payments. A) are both parties deceased? B) was the loan taken out to purchase the property or was it after the property was already owned by 1 & 2? Your best bet is to contact a good real estate attorney. They will need to see the deed, loan documents, and both wills if both parties are deceased. Of course some of this is depending on who died first. Sorry to not be able to give you a concrete answer but you are crossing over to matters better suited for an attorney. If you need a referral to a good attorney in High Point just let me know and I can give you one.

If you need any other questions answered or need the attorney's contact info you can contact me through my profile here on Trulia or through one of my other websites listed below.

Hope this helps,
Web Reference:  http://www.storybookhomes.ws
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Anna M Brocco, Agent, Williston Park, NY
Wed Oct 6, 2010
Since this a legal question, it's best to consult with an attorney who specializes in Trusts and Estates and or Real Estate--he/she can best advise, consider a consultation.
0 votes
Ruth McMaste…, Agent, NC,
Wed Oct 6, 2010
Hi, This sounds like a complicated situation so This is a question for an attorney to answer.
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