QUESTION
Am I liable for a loan taken out on a house which I have sold?
Asked on Mar 04th, 2013 on Foreclosures - Wisconsin
More details to this question:
I received a letter from a law office. It is about a house I used to own. It has gone into foreclosure. When I sold it they assumed the loan. This was back in 1988. Am I liable for the loan? Do I need to hire a attorney? Will this hurt my credit?
6 ANSWERS
Yes, this could hurt your credit and you need to approach the lender. If the lender released you from the loan and allowed the new buyer to take it over, you should be OK. But, if the lender never agreed to let you off the hook, you are still liable.
Answered on Apr 01st, 2013 at 3:05 AM
Criminal Defense Attorney serving Englewood Cliffs, NJ
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Savyon Grant, Esq. & Associates
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Sounds like you may. Lawyer should review all the documents.
Answered on Mar 06th, 2013 at 11:18 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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If you signed the loan documentation then you are liable unless the law of the state where the property is located indicates otherwise. If you did not sign the loan documents then you should not be liable. But, I don't know where you live and the law is different in each state. Therefore, it would be best to talk to a good real estate/foreclosure attorney licensed in the state where the property is located.
Answered on Mar 06th, 2013 at 8:14 PM
1 Award
Yes, you may be liable on the loan. Unless the lender agreed to release you when you sold the property, you may still be liable. If this is a California property and the loan was obtained to purchase the property when you bought it, you may have some protection. Also if the loan has been in default for over four years, the lender may be barred from suing you under California law. Yes, nonpayment will hurt your credit since the loan was in your name. Yes, you should retain counsel to assist you.
Answered on Mar 06th, 2013 at 8:12 PM
You may have been sued through a judicial foreclosure and not known it or on a 2nd mortgage on the property. If you have not been sued, the statute of limitations has long since past. If they are trying to collect, you may need legal counsel.
Answered on Mar 06th, 2013 at 8:00 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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The situation might very well hurt your credit. Hiring a lawyer may be your most effective use of money unless the deficiency they seek is very small. Double-check the papers signed when the loan was assumed. See if it has any conditions or limitations or expiration, or anything in it which might release the people who assumed the debt from liability. Particularly see what the lender obliged itself to do or not do when it approved the assumption.
Answered on Mar 06th, 2013 at 7:57 PM