What is my liability for a home equity loan my ex took out?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What is my liability for a home equity loan my ex took out?

My ex husband was the sole person on the
mortgage of the home we lived in. He took out
a home equity loan in only his name. I had to
sign some paperwork due to having a vested
interest in the house. Now that we are divorced
he has filed bankruptcy and the bank has been
calling me to request repayment on the loan?
Am I liable?

Asked on April 6, 2017 under Real Estate Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

It depends on what you signed: if the documents you signed obligated you on the loan, made you a co-signer, had you guaranty the loan, etc., then you are liable on it.
If not--if the documents don't impose liability--then you should not be responsible for paying the loan; of course, if it is not paid, the lender can foreclose on the house and you'd lose it, so in this case, if you care about the house (either as a home or investment), you should talk to the lender about paying off, taking over, or refinancing (in your name) the loan. 
In any event, you need to review the documents you signed; they are critical.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption