Legal Question in Real Estate Law in New York

Great rights

You have a home, no personal liability but there is a mortgage against the property.

This means the bank cannot sue you personally, only go against the property for the money.

However, if you are buying or getting a house and not contacting the mortgage company about the change you can be in danger. If the mortgage company finds out about the change and they were not told they may demand the entire amount as due. This is a rare event and usually only happens if the mortgage is late in being paid, but is a possibility.

Re: buying a home

If you will be an owner of the property, then your name will appear on the Deed (title to the property) and on the mortgage (security interest) but may not appear on the Promissory Note to the lending instituion. This senario is very common.

It plainly means that you are not borrowing the money from the bank and are not responsible for the monthly payments (nor is your credit affected). However, if the borrower defaults on the payments, it would be in your best interest to assume the payments to avoid foreclosure since you are pledging the property as collaterol.

You do not have any less property rights than the borrower of the loan.

If you should have any further questions, please do not hesiatte to contact me.