My mother in law is deceased her house is in foreclosure. My wife and her sisters have been served with a summons by the mortgage company . ...

Question

My mother in law is deceased her house is in foreclosure. My wife and her sisters have been served with a summons by the mortgage company . Can they be held liable for the unpaid balance or can they let it be foreclosed on? The property is in Chicago Cook County.606

Answer

Even if they allow the home to be foreclosed upon, the estate can be sued for the balance owed. Depending upon the solvency of the estate, and the nature of other possible liabilities of the estate, the deficiency may or may not have to be paid. In sum, however, if, after payment of any other debts having priority over that of the mortgage company, there remain assets in the estate, certainly those assets are available for payment of the deficiency on the mortgage.

Answer

The heirs would not be personally on the hook to pay any deficiency from their own assets, but the estate may have a responsibility. If anything has been paid from estate funds or distributed, that may create an issue as priorities should have been followed through proper notice and administration of the estate. There may or may not be an issue, but facts learned from a consultation would be required to obtain reliable advice.