DEAR BENNY: My mother has a mortgage for about $26,000. Her home is worth considerably more (how much I’m not sure), but given today’s housing market the value has probably declined. I do know that the terms of the loan are such that she’s paying only the interest monthly — she’s not paying down the principal.

If she defaults on the loan, can the bank compel her to sell her home? Would they be entitled to the $26,000 plus fees? And if so, any idea what those fees would be?

What options does she have regarding a different loan or repayment schedule?

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