Can a bank take all your personal saving/checking accounts to satisfy a second mortgage?

The terms of EVERY financial account you have EVER opened specifically allows a 'right of offset'. This refers to a clause that says they CAN seize ANY AND ALL assets you have on deposit with them to satisfy any past due debt. The attorney SHOULD have advised your friend form day one that this was LIKELY to happen. The amount beyond the original payoff amount will be listed as legal fees. Adding legal for collection is legal, but the amount must be 'reasonable'. Reasonable is the legal term for whatever amount the court agrees to AFTER the fact.

Another answer stated the loan 'likely' gave a right of set off. This in not accurate. That clause has been in EVERY loan agreement AND every deposit account terms for over 30 years. It is NOT likely, it is GUARANTEED.

if the checking,savings and mortgage accounts are all the same entity,.... yes.

as reported in other answers... right of offset.

and guess what: if you have accounts at bank a, and bank b, and bank a buys bank b, then your accounts are now all with the same entity and the law applies.

many people have been caught by this during the past few years; they usually notice when their accounts suddenly get drained to zero and overdraft fees start piling on.

In his loan he likely gave the bank right of 'set-off'. This means that they can set-off against other accounts he held at that bank for all sums owed.

He's likely out of luck, but he should talk to his attorney to see if they can get back what was negotiated before the bank exercised the set-off.

there is one distinction on the subject of financial employer money owed and credit enjoying cards. in case you (being first) opened an account until now your marriage, or opened an account along with your call basically, yet further the 2d call after the account replaced into everyday, you would be completely in charge and the account is thoroughly yours. the 2d guy or woman further after a longtime account, is many times further for counsel basically, however the 2d guy or woman has no authority to alter something on the account or close the account. this could selection state by using state however.

Yes they can do it and not he can't get it back and yes he owed more since interest and penalties kept accumulating.