Signed enitity on a mortgage.

[navinjay]

On a mortgage note that we took the signed entity, an LLC, is different than the Mortgagor named on the top, which is another LLC. Who is the bank going to go after in case of a defeciency judgement. Because the signed entity has no assets; the mortgagor named on the top has. Will the bank have a legal leg to stand on?

Thank you

 

[dee_dub]

Who received the mortgage funds? Why is the signatory not the same as the mortgagor? Sounds fishy to me.

You ask two separate questions: who the bank is going to go after, and whether they have a legal leg to stand on. As to the first, the bank will no doubt go after both, unless it is patently obvious that the signatory is judgment-proof. Whether their claim against the named mortgagor will succeed is a good question - I don't doubt they could make a good case in contract, and at the worst could argue unjust enrichment.