Am I liable for a loan taken out on a house which I have sold? 7 Answers as of April 01, 2013

I received a letter from a law office. It is about a house I used to own. It has gone into foreclosure. When I sold it they assumed the loan. This was back in 1988. Am I liable for the loan? Do I need to hire a attorney? Will this hurt my credit?

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Durham Jones & Pinegar | Erven Nelson
Yes, this could hurt your credit and you need to approach the lender. If the lender released you from the loan and allowed the new buyer to take it over, you should be OK. But, if the lender never agreed to let you off the hook, you are still liable.
Answer Applies to: Nevada
Replied: 4/1/2013
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Yes, when you assume a loan, the original person who took the loan remains liable. You would have a foreclosure on your record and your credit will be damaged.
Answer Applies to: New York
Replied: 3/6/2013
Law Office of Savyon Grant
Law Office of Savyon Grant | Savyon Grant
Sounds like you may. Lawyer should review all the documents.
Answer Applies to: New Jersey
Replied: 3/6/2013
Law Office of D.L. Drain, P.A.
Law Office of D.L. Drain, P.A. | Diane L. Drain
If you signed the loan documentation then you are liable unless the law of the state where the property is located indicates otherwise. If you did not sign the loan documents then you should not be liable. But, I don't know where you live and the law is different in each state. Therefore, it would be best to talk to a good real estate/foreclosure attorney licensed in the state where the property is located.
Answer Applies to: Arizona
Replied: 3/6/2013
Frank Law Group, P.C.
Frank Law Group, P.C. | David E. Frank
Yes, you may be liable on the loan. Unless the lender agreed to release you when you sold the property, you may still be liable. If this is a California property and the loan was obtained to purchase the property when you bought it, you may have some protection. Also if the loan has been in default for over four years, the lender may be barred from suing you under California law. Yes, nonpayment will hurt your credit since the loan was in your name. Yes, you should retain counsel to assist you.
Answer Applies to: California
Replied: 3/6/2013
    Stacy Joel Safion, Esq.
    Stacy Joel Safion, Esq. | Stacy Joel Safion
    You may have been sued through a judicial foreclosure and not known it or on a 2nd mortgage on the property. If you have not been sued, the statute of limitations has long since past. If they are trying to collect, you may need legal counsel.
    Answer Applies to: California
    Replied: 3/6/2013
    Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
    The situation might very well hurt your credit. Hiring a lawyer may be your most effective use of money unless the deficiency they seek is very small. Double-check the papers signed when the loan was assumed. See if it has any conditions or limitations or expiration, or anything in it which might release the people who assumed the debt from liability. Particularly see what the lender obliged itself to do or not do when it approved the assumption.
    Answer Applies to: Wisconsin
    Replied: 3/6/2013
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