If the deed/title is in my name but not the mortgage, amI liable if I just walk away from the property?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If the deed/title is in my name but not the mortgage, amI liable if I just walk away from the property?
My wife and I purchased a house 15 months ago. We went to closing and thought we were assuming the mortgage on the house. As it turns out, the bank never recognized the assumption and the insurance company didn’t either (they immediately canceled the policy when I contacted them about a claim). Even though we’ve been making the monthly loan payments and the deed is in our name, are we responsible for the mortgage or could we we walk away and not be liable?
Asked on August 12, 2011 Texas
Answers:
Richard Weaver / The Weaver Law Firm
Answered 13 years ago | Contributor
If you are not responsible for the loan, but you are on the deed, you just cannot walk away. Perhaps you can convey your interest to the other co-owner to remove yourself from the deed. Visit www.WeaverLawyers.com for futher real estate information.
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If the purchase contract that you purchased the home from the prior owner stated you were assuming the existing loan secured by a trust deed or mortgage on the property, but the existing loan for the purchased home is not assumable, and no paper work has been drawn up and signed by you and the lending institution allowing the assumption of this loan, you are not legally responsible to the lender for the loan even though you are on legal title to the property.
You could stop paying on the mortgage and the lender has no recourse against you for this. However, the former owner may have recourse against you for not paying on the loan that all thought was an assumable loan if the home is foreclosed upon due to your failure to pay the monthly mortgage and there is a deficiency judgment.
If the loan is not assumable and you want your own loan for the home, the way to proceed is to refinance the existing loan.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.