Legal Question in Real Estate Law in North Carolina

My daugher assumed a loan on a home approx two years ago. The bank where she assumed the loan went under and another bank now has her loan. The new bank has been calling her asking for some late fees and missed payments that were from the prior owner and before she assumed the loan. The new bank says it has no record of her assuming the loan and everything is still the prior owner's information, including his social security number. She called a representive at the bank that went under, and they said notes in her file say the loan assumption was never finalized because it was never approved by Fannie Mae. All loan assumptions agreements were signed and submitted by all parties and the deed was transferred to my daughter back several years ago. All this was initiated by the bank. How could all this have been done if the loan was never finalized? The new bank refuses to acknowlege that the loan is her's now (she can't get any tax benefits for interest, etc, because the original owners social security number is on the loan) My question: Since no one acknowleges that she assumed the loan, can she just move out, walk away and it not hurt her credit ratings. Her name is on the deed, but not on the loan. Does she have any legal obligation to pay the payments? Also, can she sell the house, since the deed is in her name, even though the loan is not?

Teresa Woods


Asked on 2/27/10, 2:50 pm

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

I would contact your daughter's closing attorney and your daughter's title insurance company immediately. She will have trouble selling the house unless the loan is paid off.

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Answered on 3/04/10, 3:47 pm


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