I Signed my Property Over to an Investor who is Now Making Late Payments to our Lenders, What Can I do?

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“DearEsq.

[NOTE: Articles and answers on DearEsq., while written and published by lawyers, do not constitute legal advice, and no attorney-client relationship is formed by your reading of this information. You should always consult with an attorney for any legal situations.]

My wife and I were in signed over the Deed to our house about 3 years ago. The person in control is an investor and basically gets property through this process. The first 6-8 months was fine, as he made all the payments and leased out the property to build more equity. Over the past 28 months, it has been a nightmare. We are constantly getting phone calls from the lenders stating late payments. Do I have any legal rights regarding this situation?

Thanks for any help!”

It’s hard to tell exactly what the deal was that you made with this investor, so it’s difficult to say for sure what your situation is. If you still have a mortgage on the property that is in your name, then as far as the bank is concerned this is your problem. You need to make the payments (or make sure they are made) or your credit will be affected. The fact that you don’t own the house is irrelevant–except that it could trigger the bank asking for full and immediate repayment!

As for your relationship with the investor, you’d have to consult the contract that you have with him to determine what your relative rights and obligations are. If this relationship is heading down the drain, you might want to consult with an attorney sooner rather than later.



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Author: House Attorney

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