Posted by JohnBoy on October 07, 2003 at 12:45:25:
Depends on what all was recorded. If you only recorded a deed where the seller transferred title to you, deeding the property to you subject to the existing mortgage(s), then all you would need to do is refinance. When you refinance your lender will take the proceeds of your loan and pay off the existing mortgages. Then anything left would be paid to you.
If you have something recorded that shows your friend has something coming then they would get paid from the proceeds of your loan as well as the lender(s) holding the existing mortgage(s). Otherwise your friend is at the mercy of you making good on paying them off.
Other than a deed being recorded where the seller deeded the property to you, what else, if anything, was recorded to insure your friend gets paid back?