Sold Home With Mortgage

Question: My mother sold her home in St. Joseph, Michigan, in 2005. Her understanding is that she sold her home and the debt of the mortgage was subtracted from her sale of the home. But the mortgage company never received the payment. Please help me understand what assuming a mortgage is about. The men dealing with this case seem very sneaky, and every time I call, they send me in circles. Thank you for your time.

Answer: It sounds like your mother has a real problem. Of course when a mortgage is paid off, the mortgage company gets the money and the debt is released. When a mortgage is "assumed", the person buying the property subject to the mortgage generally agrees to pay off the mortgage as the monthly payments fall due. The original signer of the mortgage is still liable for the debt if the mortgage is not paid off. I recommend that you go with your mom to see a real estate lawyer and pay him to protect your mom's interest. You want to make sure the real estate lawyer is independent of the real estate company that sold the home so there is no conflict of interest.

Attorney: Mark Miller