An attorney is who you need to speak with. But, my not-so-expert response is that yes, it sounds like your husband took out the loan against the house, right? If it was not repaid, then the debt still exists, against both your husband and the house. Without reading the letter, I am confused as to whether it was a loan assumption of sorts or if the letter was simply an exclusion on a title policy.

But, even if your husband believes that the buyer is responsible for the debt, I don't think that takes him off the hook. He MAY have some sort of claim to the house if he has to pay it, assuming that the paperwork really did mean she was responsible for the debt.

It's rather complex, and an attorney does need to get involved. Start by calling the person that did your settlement to make sure you really understand the intent of the paperwork and type of transaction. That attorney may be able to assist you further or refer you to someone else.

Wow Asha this is a tough one....Lisa is absolutely correct in seeking advice from a real estate attorney. I do know that the buyer has no liability concerning liens that the seller may have had on the property prior to the purchase...So technically speaking it's not the buyers bill to eat....However try contacting the title insurance company, they may have a stake in this claim....Hope this helps, an attorney would certainly be your best bet...Best of luck to you on this one....I"d love to know how this pans out for you, please keep us posted.

Asha,

You absolutely need to speak to a real estate attorney. Agents are not legal experts. Best of luck!