Makes sense to me. But good legal advice there. If the parents do something to show that they’re accepting the house, they may beat.
And the bank would JUST LOVE to trick them into it - so the bank doesn’t lose the $100k on the foreclosure.
Ownership and indebtedness is not one in the same thing. The parents can own it and yet not owe on the mortgage. It can go to auction and it will not appear on the parents’ credit.
Best advice to any parent, do not co-sign anything for your kids. If you do you put your home and assets on the chopping block....I have refused to co-sign for 2 of my kids....My dad raised no foolish children....