Is one owner of a house liable for an ELOCif the other owner obtained it without their signature?

UPDATED: Feb 20, 2012

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Is one owner of a house liable for an ELOCif the other owner obtained it without their signature?

A male and a female purchased a home together. The male obtained and ELOC without the female’s signature. The male later signed ownership over to the female by special warranty deed. Is the female still liable for the ELOC when selling the home?

Asked on February 20, 2012 under Real Estate Law, North Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

In your situation's fact pattern, the female who to legal title to the property in full by the special warrantly deed from the male takes full legal title to the property subject to the ELOC (equity line of credit) in place.

I find it out of the ordinary for the male joint owner to have obtained the ELOC where his interest in the property was security for it without the other owner of record being asked to sign a document by the lender allowing it.

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