Lien Theory of Mortgages and a Joint Tenancy with the Right of Survivorship

Apr 19, 2022
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My question applies to a state using the Lien Theory of Mortgages. It also applies to ownership through Joint Tenancy with the Right of Survivorship (JTRSS).

Here are the facts that I have made up for this question.


1. There is a JTRSS with parties A, B, and C owning Property X by way of a vesting deed where parties A, B, and C were named as grantees by way of a JTRSS.

2. To obtain the property, party A obtained a mortgage. Only party A is the mortgagor for the mortgage of $100,000. Parties B and C did not sign nor did the bank request their signing.

3. Party A paid $50,000 towards the mortgage over the course of many years, all while parties A, B, and C lived there.

4. Party A stops paying the month prior to party A's death.

Legal Questions:

1. After A's death, since this state follows the Lien Theory of Mortgages, it appears that B and C--- will be vested with A's property interest through the operation of law.

However what interest will this be exactly?

Will B and C take A's interest with or without this encumbrance?

2. If B and C take the interest without the mortgage, is the bank left to make a claim on A's estate? Or will the bank do something else?

Thank you so much.