Release of liability

[Debo]

Louisiana, in 1985 we bought a house with a HUD backed mortgage. In 1990 we let someone assume the no qualify loan. Now they are in default. The bank that we used is now out of business, the loan went to HUD in 1995, they sold the loan in 1997 to another bank.

I am trying to find out if I could get a release of liability, and if I could be held responsible for any monies when the house sells. I thought that I could be held liable for only 5 years. Is someone released after the 5 years even if they did not request a release of liability?

I have contacted HUD and the lastest bank. HUD says they do not have any papers on the loan since they sold it. HUD also stated that the new bank does not have to follow any of the HUD rules. The new bank will not give me any information either.

My ex threw away all papers involving this house.

Where do I go from here?

Any help would be appreciated.

Thanks,

Deb


[Edited by Debo on 06-17-2001 at 08:18 PM]

 

[HomeGuru]

There is a good possibility that you may not be liable at all. If there was an total assumption of the loan, then you were out of the picture. If you still have contingent liability then you need to be sure.
You should be able to get copies of the recorded mortgage and transfer docs from a title company.
Have a real estate attorney review everything for you.

 

[Debo]

How can I tell if which one I have. We went to a attorney, which at first look said we were liable and then said we weren't liable and then with his bill said that we were liable. I don't have faith in this man.

Where do I find a title company?

Thanks for the information, maybe I can get all this figured out.

Debo

[Edited by Debo on 06-18-2001 at 07:54 AM]

 

[HomeGuru]

If you don't have faith in the man, get a new man.
Your next man should be able to order a title report for you.
Also look in the yellow pages under Escrow/Title Companies.

 

[Debo]

Thanks for the information.

Debo

 

[HomeGuru]

No problem and keep us posted.