Legal Question in Real Estate Law in New York
My wife had signed a mortgage deed for house under her name only in NY State to a bank which had lent money to me to start a business. However, she never signed for the loan or any promissory note or personal guaranty. Is the mortgage deed enforceable?
Asked on 10/04/12, 7:19 pm
1 Answer from Attorneys
Kevin Connolly
Kevin J. Connolly
Yes. You don't have to sign the loan to offer your real estate as collateral. Where the banks run into trouble with these loans is Truth-in-Lending. They underwrite this as a business loan and ignore that a mortgage of the homestead makes the mortgage part into a "personal, family or household" loan because she loaned the collateral to you.
This will make the bank crazy. And don't forget there are dozens of ways to keep the mortgagee at bay.
Answered on 10/05/12, 12:34 pm
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