Q: I'm in Partition Lawsuit. I signed the Deed of Trust, BUT not the note. Am I liable for unpaid note?
I signed Deed of Trust to let Bank know I was aware that the property is collateral for loan, but banker told me that I'm not liable to pay off remaining unpaid portion of note (to sell the property) BECAUSE I'm NOT ON THE NOTE itself.
If opponent refuse to pay, then what? The bank comes after me? I can and will pay, but only if opponent is released from ownership.
A: It looks like you do not understand the Partition Suit. If there is a Court ordered Sale then the Court will pay alot of expenses and the secured debt against the property prior to the net proceeds being divided amongst the former owners. That is even though you do not owe on the note, the land will still be collateral for the indebtedness, irregardless of who actually owes the loan monies. You should have known this from the start of a Partition Action. If In Kind, again the land will probably stand as collateral for the Deed of Trust. It may be possible to apportion the debt amongst the distributions, but I doubt it. Hire a competent attorney.
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