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   santari

   eNotes Editor

   You are not responsible for the loan as a matter of contract law. If you have not signed the contract, you cannot be bound by it. A contract requires mutual assent between the parties, and in cases involving real property, must always be in writing.

   However, in all likelihood, the loan contract is secured by the real property.  This means the lender on the contract has a lien against the property. In the case of a deed of trust the trustee holds legal title to the property until the loan is paid. What all this means is that if the loan is not repaid the lender has the right to foreclose on the property to satisfy the loan, in which case it doesn't matter who holds the deed -- the property will be sold to satisfy the loan and the new buyer will hold title.

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   Posted by santari on Monday March 16, 2009 at 9:30 AM