What is the liability of a bank giving someone an equity loan without the other owners knowledge or signature? Posted on August 02, 2011
I am on a house deed with another person. He is on the mortgage ONLY. He got into financial trouble and disappeared defaulting on his mortgage. I had signed for an equity loan (different bank) with him for repairs after a hurricane not knowing that the very same bank had already given him a previous loan without my knowledge or signature. I'm now in the process of trying to mediate a settlement with the mortgage holder to pay off his mortgage and the equity loans (both from the same bank) are attached to the foreclosure case. I know I can't be held responsible for the first loan, but is the bank liable for giving it to him without my knowledge. Isn't this bank fraud as it only takes me 5 minutes to check my deed online to see who is on it. I don't feel I should be responsible for the second loan either since I had no idea about the first one. Do I have a recourse against the bank?
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