Question

Three siblings, Alice, Bob, and Carol inherited a piece of land from their deceased parents. They decided to convert the land into a family home, in accordance with the provisions of the Family Code.

Years later, Alice, who is married to Dave, obtained a loan from a bank secured by a mortgage on the family home. Unfortunately, Alice was unable to pay the loan and the bank threatened to foreclose the property.

Meanwhile, Bob got married to Emily and they had a child together. Due to financial difficulties, Bob and Emily moved out of the family home and decided to rent it out to generate income.

Carol, on the other hand, remained single and continued to live in the family home.

Given the situation above:

1. Discuss the legal effects of Alice's mortgage on the family home.
2. Explain whether Bob and Emily's decision to rent out the family home is allowed under the Family Code.
3. Discuss the rights and obligations of Carol as the remaining occupant of the family home.