Legal Question in Real Estate Law in New Jersey

You are not responsible for the loan, but your property is, if you signed the mortgage. When a borrower co-owns with another person, only the borrower has to sign the Note, which is the obligation to pay. But the mortgage must be signed by all legal title holders, otherwise the bank does not get a mortgage that it can enforce against the property. The mortgage is given as security for payment of the Note.

If the loan is in default and the bank is threatening foreclosure, it is required to give you notice and name you in any legal action to foreclose. But, since you are a co-owner, it should also be talking to you, if not about specifics of the loan, certainly about the fate of the house.

You may also want to get a written authorization from your co-owner who is the borrower, allowing the bank to talk to you. The bank will probably require its own form of authorization.

THIS RESPONSE IS NOT LEGAL ADVICE, SINCE I DO NOT HAVE ALL OF THE INFORMATION THAT WOULD BE REQUIRED, AND I DO NOT HAVE A REPRESENTATION AGREEMENT WITH YOU.

* If the answers to your question confirm that you have a valid issue or worthwhile claim, your next step should almost always be to establish a dialog with a lawyer who can provide specific advice to you. Contact a lawyer in your county or township.

* Another reason for contacting a lawyer is that it is often impossible to give a good answer in the Internet Q&A format without having more information. The unique circumstances of your situation and things that you may not have thought to mention in your question may completely change the answer. If you want to be sure that you have a complete answer to your question and an understanding of what that answer means, establish a connection with a lawyer who practices in the area of your concern.