Q: When a seller financed loan is not paid, who is responsible to pay back? (Business was resold with loan)
I bought a business, seller financed for 60k. I sold the business for 30k with approval of the original seller stating he would take the lower amount since business was loosing money. Business was sold and lawyer put a escrow account for new owner to put payments into and the payments go back to the original seller, not me. New owner is not paying the loan and is in default. Who is responsible for going after the new owner for defaulting on the loan? Me, or the original seller? Since my seller financed loan was noted on the sale. Loan has personal guarantee signed as well as assets as collateral, do I or the original seller have to file a lawsuit to enforce the personal guarantee? Thanks!
A:
No way to say without first reviewing the loan paperwork. If you signed a personal guarantee and never got a release of that personal guarantee, then you may be on the hook for the loan.
You need to consult with an attorney in your area asap to get a thorough evaluation.
Good luck,
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