morgage default
A wife, husband and sister purchased a house on Land contract.The previous owner sold the land contract to a bank. The husband and wife divorced. Wife and sister got the house in divorce settlemen,than sister bought out other sister(wife). Sister has defaulted on loan. Who responible? All their names were of the original contract. All separations were file with the county and were legal. The sister never refinanced the house to remove husband or wife name from contract. Bank claiming husband and wife are responible for balance of loan.
Asked on 10/02/06, 9:57 pm
1 Answer from Attorneys
Rochelle Guznack
Law Offices of Rochelle E. Guznack, PLLC
Re: morgage default
Based on your facts, all parties who signed the land contract are bound by the land contract. There is probably some language in the land contract about what happens if the property is transferred or sold. The transferring/selling parties should have insisted that the sister refinance the property to relieve them of their liability.
Answered on 10/03/06, 8:41 am
