QUESTION
am i responsible for a mortgage that is not in my name, but the property deed is?
Asked on Apr 25th, 2012 on Real Estate - Indiana
More details to this question:
ok so i signed an agreement to finish the payments on a residence in someone elses name (as i was living there). We put the property in my name at the city county office and the tax bill would come to me, but since the taxes are included in the mortgage i did not need to pay-thus stated on the tax statement. So now the person who''s name is on the mortgage has declared bankruptcy and i have not made payments-and the house stands vacant about one year and a half. are their any legal reprocutions for me?
1 ANSWER
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In more simple terms, it sounds as if you bought a house with a mortgage on it and now the payments are in default. Certainly, the mortgage lender is entitled to foreclose if it does not receive the payments that it originally contracted to receive. Whether you have personal liability is another question and depends on the language used in your purchase agreement. Did you "assume the underlying debt" or did you simply buy the property "subject to" the underlying debt? If the former, then you will have personal liability if the foreclosure does not wipe out the debt. If the latter, you will not have personal liability. You should confer with a good real estate attorney about the situation. Take all your purchase documents with you so he/she can review the details.
Answered on Apr 30th, 2012 at 10:19 AM