Is it legal for a bank to transfer a LOC from one property to another after a sale if they say that the LOC wasn’t paid off?
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Is it legal for a bank to transfer a LOC from one property to another after a sale if they say that the LOC wasn’t paid off?
My ex-husband and Ipurchased a property and took out a LOC on it; we both signed the loan. After the sale of the property the bank said that it wasn’t paid and they transferred it to an open LOC I have on my own home. I never signed anything or agreed to take on this loan by myself using my property.
Asked on June 22, 2011 under Real Estate Law, Florida
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
I think that you may have mis-understood exactly what type of loan you took out. A line of credit - or LOC as you are calling it - is a personal loan not tied to any property or other collateral. It is tied to you. It is known as an unsecured loan because it is not tied to any collateral. Did you think that you were taking out a home equity line of credit which is a line of credit that is secured to the property? Double check your paperork by taking it to someone who can read it for you with a fine tooth comb. The documents you signed originally are the binding documents. Good luck.
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