I didn't read past the paywall, but if it says the mortgage was $610K, that's probably what's meant. But if she owns half the house, the bank would have seen that equity as an asset, and the LTV for the house would be only 50 percent. Which means if she can't make the payments, she can sell the house and pay off the loan. So from the bank's pov, it's a fairly safe bet, even if not necessarily a smart move for the buyer.
