Estate Law Questions? Ask an Estate Lawyer.
Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.
Do I understand correctly that your mother has only a life estate?
Then your mother's interest terminates upon her death and she can not designate who gets the property after she dies.
Under the grant from your grandmother the grandchildren have a remainder interest.
If your grandmother mortgaged the fee simple interest then it is a presumably valid lien which the bank can foreclose if it goes into default. The grandchildren with the remainder interest have the most to lose, but all estates, life and remainder, would be wiped out by a foreclosure.
If only your mother's interest was mortgaged then upon her death the loan became unsecured and all the lender can do is go against her estate. If you brother mortgaged his remainder interest, as well then the bank can foreclose on his interest.
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