Agent

Home sale subject to existing mortgage hurts seller

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

DEAR BOB: My first husband and I bought a new home in 1986 and sold it in 1989. Our buyers later sold the house to another buyer. This second buyer shows up on my credit report because he is constantly late with his mortgage payments on my old mortgage. The house even went into foreclosure, but the second buyer rescued it just before the foreclosure auction. Why am I still responsible for a mortgage on a house I no longer own? It is ruining my credit report. The mortgage company says I will continue to be responsible for this mortgage until it is either refinanced or a new buyer obtains a new mortgage. This is not fair. What can I do? – Lori D. DEAR LORI: It appears you sold that house in 1989 "subject to" its existing mortgage. That means you remain legally liable for the mortgage payments although you no longer own the house. Purchase Bob Bruss reports online. From your viewpoint, it would have been smarter for you to have required your buyer to formally assume that mortgag...