Legal Question in Real Estate Law in Georgia

loan assumption

If a court order states one of the spouse receives the property and it is recorded with a Quit Claim Deed but there is a balance on the loan , can the party awarded request the loan company redirect to that party? We were told my husband would no longer be liable for any portion since I was awarded the property and agreed to pay the balance. does the finance co have to accept the corts decision and change the name to me?


Asked on 6/30/08, 10:07 am

2 Answers from Attorneys
Harold Holcombe Harold D. Holcombe, P.C.

Re: loan assumption

You were told incorrectly. Until you refinance, his name will be on the note and the bank will hold him liable for payment. You own the equitable interest outright, but he is still under contract with the bank.

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Answered on 6/30/08, 10:20 am
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: loan assumption

You were told wrong. Presumably, the lender was not a party in your divorce case and cannot be ordered to release the borrower, or to loan money to anyone else (i.e., the spouse who gets the property in the divorce). Further, in most cases the transfer of the property will violate the loan documents and the entire loan is due immediately and if not paid off, the property will be subject to foreclosure.

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Answered on 6/30/08, 10:25 am


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