Legal Question in Real Estate Law in Michigan
Collateral and liens on a loan
I have a line of credit that has a house as collateral. I owned the house up until July of last year but sold it. The loan I had did not have a lien on the house. So, now I have the loan, but I don't own the collateral anymore. What is my obligation on the loan? If I default on the loan can I be sued?
1 Answer from Attorneys
Re: Collateral and liens on a loan
If you had a loan with house as collateral, that loan should have been paid off and cancelled when you sold the house. I don't understand how the house was collateral but there was no lien on it. The Lender forgot to record a deed of trust?
To answer your specific question, yes you are personally liable if you default whether or not the Lender has a lien on the house.
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