1) The sheriff's officer is correct: until foreclosure is complete and the bank acquires title, they may not make changes to the structure. They also may not take or dispose of any personal property in the home, since such is not subject to the mortgage in any event and they could be used for its value.2) Even if the bank did not sign, if your parent's signed and received the money, the mortgage is valid and enforceable. Them indicating their agreement and receiving "consideration" is sufficient to create a contract.3) You are named not because you are liable under the loan, but because you have a potential interest in the home as a presumptive heir and have to be named to give you a chance to protect your interest, if you choose to do so.