Legal Question in Real Estate Law in Michigan

Collateral and liens on a loan

I have a line of credit that has a house as collateral. I owned the house up until July of last year but sold it. The loan I had did not have a lien on the house. So, now I have the loan, but I don't own the collateral anymore. What is my obligation on the loan? If I default on the loan can I be sued?


Asked on 8/08/06, 10:14 pm

1 Answer from Attorneys
Jeff Rosner Rosner Law Firm P.A.

Re: Collateral and liens on a loan

If you had a loan with house as collateral, that loan should have been paid off and cancelled when you sold the house. I don't understand how the house was collateral but there was no lien on it. The Lender forgot to record a deed of trust?

To answer your specific question, yes you are personally liable if you default whether or not the Lender has a lien on the house.

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Answered on 8/09/06, 8:30 am


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