How can I get my name removed from a land loan as the co-signer if I am not on the deed and the other party is talking about letting the property go?

I contacted the bank and their response was to have the other party refinance or pay the loan off. The other party will not pay to have a refinace and is thinking about letting the property go.

Asked on June 12, 2012 under Real Estate Law, Michigan

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You are not in the best position here: liability with no ownership interest.  And I think that it would be best to consult with an attorney in your area.  If the other party walks away then you are going to be held liable in a foreclosure and possibly a deficiency judgement.  You need to either have the other party do a short sale or a deed in lieu of foreclosure with you and have the lender waive the deificiency.  Good luck.


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