Posted on: 30th Mar, 2009 09:30 am
i signed a quit claim deed and an individual sale agreement with my business partner that he will assume the mortgage liability solely. recently he stopped paying the mortgage and i haven't been associated with him in over 2 years. can the bank still hold me responsible even though he signed an attorney written contract stating he would assume full liability on the loan
welcome nickpezzuto,
though your partner signed a contract stating he would assume full liability on the loan, did he refinance the loan in his name? if he hasn't refinanced the loan in his name, then your credit will be affected due to his non-payment of debts. moreover, if the property is foreclosed, the lender may sue you for the deficient amount.
though your partner signed a contract stating he would assume full liability on the loan, did he refinance the loan in his name? if he hasn't refinanced the loan in his name, then your credit will be affected due to his non-payment of debts. moreover, if the property is foreclosed, the lender may sue you for the deficient amount.
thanks adonis, i'll check with the lender and see what they can do
Hi
Did you inform your lender about the assumption of the loan? In case you did and your friend assumed the loan with your lender's approval, I don't think the lender would come after you for the loan. If you didn't, then you should immediately contact your lender and see what they have to say on this.
Did you inform your lender about the assumption of the loan? In case you did and your friend assumed the loan with your lender's approval, I don't think the lender would come after you for the loan. If you didn't, then you should immediately contact your lender and see what they have to say on this.