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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 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.

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