Joint and Several Liability

[Sandie Bakke]

What is the name of your state?What is the name of your state? Texas

My husband and I purchased a home in 1999, I did not sign the mortgage note, but I did sign the Deed of Trust. In 2003 my husband passed away and now I am unable to make the mortgage payments and the mortgage company is foreclosing.

In the Deed of Trust under Successors and Assigns Bound, Joint and Several Liability; Co-Signers, the document reads "Any borrower who co-signs this Security Instrument but does not sign the Note (a) is co-signing this Security Instrument only to mortgage grant and convey that Borrowers interest in the property under the terms of this Security Instrument, (b) is not personally obligated to pay the sums secured by this Security Instrument, and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of the Security Instrument or the Note without the Borrower's consent".

My questions is - does (b) in the above clause release me from personal liability and responsibility for the loan. I have been told by the Attorney for the mortgage company that because I signed the Deed of Trust I am liable for the loan deficient once the loan is foreclosed and the house is auctioned off to the highest bidder.

Thank You,

Sandra Bakke

 

[HomeGuru]

What is the name of your state?What is the name of your state? Texas

My husband and I purchased a home in 1999, I did not sign the mortgage note, but I did sign the Deed of Trust. In 2003 my husband passed away and now I am unable to make the mortgage payments and the mortgage company is foreclosing.

In the Deed of Trust under Successors and Assigns Bound, Joint and Several Liability; Co-Signers, the document reads "Any borrower who co-signs this Security Instrument but does not sign the Note (a) is co-signing this Security Instrument only to mortgage grant and convey that Borrowers interest in the property under the terms of this Security Instrument, (b) is not personally obligated to pay the sums secured by this Security Instrument, and (c) agrees that Lender and any other Borrower may agree to extend, modify, forbear or make any accommodations with regard to the terms of the Security Instrument or the Note without the Borrower's consent".

My questions is - does (b) in the above clause release me from personal liability and responsibility for the loan. I have been told by the Attorney for the mortgage company that because I signed the Deed of Trust I am liable for the loan deficient once the loan is foreclosed and the house is auctioned off to the highest bidder.

Thank You,

Sandra Bakke

**A: who is on title to the property and who signed the mortgage?

 

[JETX]

My questions is - does (b) in the above clause release me from personal liability and responsibility for the loan.

Based SOLELY on the information in your post, it would appear that you are correct in that your not being a signator on the note excludes you from liability. Clearly, the closing agent screwed up in not getting your signature on the note also.

However, the problem is going to be that no matter whether you are right or wrong, the mortgage company is certainly not going to just roll over on this. They are likely going to use their deep pockets to try to force you to pay, even if you are not obligated to do so.

Contact the Travis County bar (you are in Pflugerville, right??) at the following and get a low-cost referral ($20.00 fee for the first half-hour of your consultation) to a local attorney.
http://www.austinlrs.com/

 

[Sandie Bakke]

**A: who is on title to the property and who signed the mortgage?

Both my husband and I are listed as the property owners, but only my husband signed the mortgage loan.

Sandra

 

[Sandie Bakke]

Based SOLELY on the information in your post, it would appear that you are correct in that your not being a signator on the note excludes you from liability. Clearly, the closing agent screwed up in not getting your signature on the note also.

However, the problem is going to be that no matter whether you are right or wrong, the mortgage company is certainly not going to just roll over on this. They are likely going to use their deep pockets to try to force you to pay, even if you are not obligated to do so.

Contact the Travis County bar (you are in Pflugerville, right??) at the following and get a low-cost referral ($20.00 fee for the first half-hour of your consultation) to a local attorney.
http://www.austinlrs.com/

Thanks for the link, I'll contact them. I'm not sure that my not signing the loan was an oversight though. At the time that the house was purchased I had a bankruptcy on my credit report and the mortgage company would not finance the loan as long as my name was on the application.