Foreclosure in Woodstock>Question Details

Alex327, Home Seller in Woodstock, VT

My name is on the mortgage but not the note am I liable for the debt?

Asked by Alex327, Woodstock, VT Tue Apr 6, 2010

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Justananswer’s answer
I just went through this and this is the exact advisement from my lawyer. There are three documents that are part of a closing, the Mortgage, the Deed and the bank note. Because of Vermont's homestead law, you can be on the mortgage because you need to sign off your homestead rights to the property however, you are not liable for any of the payments nor do you have any ownership in the house. The deed can be held in someone else's name and the note as well. If you did not sign the bank note you are NOT LIABLE! If your name is not on the deed you have NO LEGAL OWNERSHIP in the property. More then likely you were asked to waive your homestead rights and the only way that can legally be done it through the Mortgage which basically gives you no rights or responsilblity to the property!
0 votes Thank Flag Link Mon Sep 27, 2010
If you're on the DEED and not on the note, you're not liable for the debt. Whomever is on the note is liable for the debt.
2 votes Thank Flag Link Tue Apr 6, 2010
Old thread but there is some erroneous information in some of these comments.

The note specifies the amount of the loan, the interest rate, the monthly principal and interest payment and other important terms. It is not necessary that both spouses sign the note, even though the home is owned jointly, as husband and wife. One party can sign the note alone. Only the person or persons on the note are liable for the payments.

The other important legal document is the mortgage or "deed of trust." This document gives the lender a lien on your home to secure repayment of the note. What this means is that in the event of default in payment of the note, the lender can foreclose on the home and sell it. The mortgage or deed of trust must be signed by all those in title to the property. If two people own the home jointly, they are both required to sign the mortgage, even if both did not sign the note. By signing the mortgage, you agreed to allow the lender to foreclose on the home if the note is not paid in accordance with its terms.
0 votes Thank Flag Link Wed Jan 9, 2013
I think you meant to say not on the deed. However the Answer is YES you are liable for this. Did you sign for someone? Do you live in the property? Unfortunately if you are on the Mortgage but not the deed you also cannot sell the property.
0 votes Thank Flag Link Wed Apr 7, 2010
Ir you are on the mortgage it is reported to the 3 credit bureaus YES you are.

Strange you are on the mortgage however not on the note?
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0 votes Thank Flag Link Tue Apr 6, 2010
If you are on the mortgage, that is the debt.

If you mean you are on the title but not the mortgage, then no you are not liable for the debt. Being on title is a form of ownership.
0 votes Thank Flag Link Tue Apr 6, 2010
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