Am I legally responsible to pay the remaining amount on a 25% loan that I didn’t sign?

I did a 75/25% loan on my home four years ago. I have now discovered that I never signed my loan for the 25%. Even though I have been paying, am I legally responsible for the remaining amount?

Asked on June 13, 2012 under Real Estate Law, North Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Good question. If you did not sign the promissory note and the mortgage for the promissory note secured in second position (25% loan) you are still obligated to continue making payments on it. The reason is that you received the benefit of the 25% loan when you purchased your home. Meaning, you received this loan.

I suggest that you consult with a real estate attorney to see how you could have received this second loan without signing the promissory note and the second mortgage recorded on your home. From what you have written, the escrow company was careless in handling the escrow regarding the loans that you have written about.

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