Posted by JHyre in Ohio on July 09, 2002 at 08:26:31:
If she doen’t pay on the underlying loan, the company can foreclose (take the house and sell it). That could ruin her credit if she’s on the loan. If the sale proceeds to the bank are less than the loan amount, the bank can get a judgment for the remainder- that is a court order telling your mom to pay. The judgment can be used to forcibly collect the amount due (garnish wages, seize assets, etc.).