Mother's decade-long battle with PNC Bank over frozen joint mortgage
A woman who assisted her son and daughter-in-law in purchasing a home in 2008 through a joint loan with a local PNC bank found herself in years of legal trouble after the couple separated. The dispute over the property led to a frozen loan and a battle with the bank. Experts now warn others to carefully consider the risks of joint ownership before entering such agreements.
In 2008, the woman took out a $320,000 loan with her son and daughter-in-law to purchase a house. The three formed a partnership, with all names listed on the mortgage. Years later, when the couple decided to separate, the mother and daughter-in-law wanted to sell the property—but the son objected.
The bank then froze the loan accounts and refused to accept any repayments or instructions until the dispute was settled. Despite the mother offering to repay the full loan amount, the bank still took no action. The Banking Ombudsman later raised concerns with the institution over its refusal to let her clear the debt.
After prolonged negotiations, the bank eventually offered the woman $10,000 in compensation. The case has since drawn attention to the potential pitfalls of joint property ownership.
Mortgage adviser Jeremy Andrews stressed that people should fully understand the legal implications before entering such arrangements. He recommended seeking independent legal advice and deciding in advance how assets would be divided if relationships broke down.
The dispute highlights the importance of clear agreements when buying property with others. Partnerships can help people enter the housing market, but experts urge buyers to plan for possible changes in circumstances. Legal advice and written agreements may prevent similar conflicts in the future.
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