If I have a contract stating the mortgagor is responsible for a refinance, does that mean legally they have to pay for it?

I entered a mortgage with a friend. Subsequently, I moved out due to an uncomfortable living situation. We signed and notarized a contract stating the person still living in the home would be responsible for the refinance to remove my name. Does that entail payment as well?

Asked on October 6, 2011 under Real Estate Law, Missouri

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

If you have a written agreement with your friend concerning the mortgage's refinance, you need to carefully read your written agreement in that its terms and conditions control the obligations owed to you by your friend and you to him or her absent conflicting state law. I do not understand what you mean by payment as well.

If the loan is refinanced where your name is no longer on the loan are you on legal title to the property still or not? If you are not on legal title to the property then you have no obligation to pay on the property's mortgage based upon what you have written.

I recommend that you consult with an experienced real estate attorney over the written agreement that you and your friend signed for a clearer understanding as to what the document may mean.

Good luck.


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