Dec212025
Partition Action Q&A Series

Am I responsible for any part of the mortgage after I was taken off the loan but remain a co-owner? – North Carolina

Short Answer

In North Carolina, being “taken off the loan” usually means there is no personal duty to the lender for the mortgage payment. However, staying on the deed as a co-owner still puts that ownership interest at risk if the loan is not paid, because the mortgage lien remains against the property. In a partition case, mortgage payments can also be treated as a shared “carrying cost,” so the co-owner who pays may seek contribution or a credit from the other co-owner when the court divides the property or sale proceeds.

Understanding the Problem

In North Carolina, this question comes up when a co-owner no longer appears as a borrower on the promissory note, but still remains on the deed as a tenant in common or joint owner. The decision point is whether responsibility runs to the lender (personal liability on the note) or runs between co-owners (fair sharing of property-related costs). The timing trigger often arises when one co-owner pays the monthly mortgage, the relationship breaks down, and a partition action or accounting becomes necessary.

Apply the Law

North Carolina treats “owing the lender” and “owing a co-owner” as different issues. If a person is not a borrower on the promissory note, the lender generally cannot pursue that person personally for missed payments. But the home itself can still secure the debt through a deed of trust or mortgage lien, and a co-owner’s equity can be affected by default or foreclosure. Separately, in a partition proceeding in the county where the land lies (handled through the Clerk of Superior Court), North Carolina law allows one co-owner to seek contribution for carrying costs, which can include payments on a loan used to acquire the property.

Key Requirements

  • Separate the two “liabilities” (lender vs. co-owner): The loan is enforced against the borrower(s) and against the property; contribution is a fairness adjustment between co-owners.
  • Carrying costs can be shared in partition: If one co-owner pays necessary costs to preserve the property (including qualifying loan payments), that co-owner may seek a contribution claim or credit in the partition case.
  • Exclusive possession and accounting issues can change the math: If one co-owner had exclusive possession, or if there are rents/profits to account for, reimbursement and credits may be reduced or offset depending on the circumstances.

What the Statutes Say

Analysis

Apply the Rule to the Facts: The facts describe equal co-owners with communication problems and a desire for a full accounting and a second opinion. If the client is no longer on the promissory note, the lender typically cannot sue the client personally for nonpayment, but the client’s ownership interest can still be affected if the mortgage is not paid and the property faces foreclosure. If the co-owner has been paying the mortgage and other preserving costs, North Carolina partition law may allow that co-owner to request a contribution adjustment so that the paying co-owner is not unfairly burdened when the court divides the property or sale proceeds.

Process & Timing

  1. Who files: Any cotenant. Where: Office of the Clerk of Superior Court in the county where the real property is located in North Carolina. What: A partition petition (and, when applicable, an application in the case asserting contribution/credit for carrying costs). When: A contribution request for carrying costs generally must be asserted during the partition proceeding; for an actual partition, the statute sets a deadline tied to when commissioners file their report.
  2. Each side typically gathers records for an accounting: closing documents (deed and deed of trust), payment histories, escrow statements, insurance, tax bills, repair receipts, and proof of who possessed the home and when. Disputes often center on whether claimed items qualify as “carrying costs,” whether expenses were necessary, and whether offsets apply.
  3. The clerk (and sometimes the superior court judge on appeal or on certain issues) can order adjustments, credits, or liens so the final division (or sale proceeds distribution) reflects contribution decisions, rather than simply splitting equity 50/50 without regard to who carried the costs.

Exceptions & Pitfalls

  • “Off the loan” is document-specific: A refinance or formal assumption may remove personal liability, but some situations only remove a name from billing while the note remains signed. The signed promissory note controls personal liability.
  • Mortgage lien vs. personal liability: Even without personal liability, a recorded deed of trust can still allow foreclosure against the property, which can wipe out or reduce a co-owner’s equity.
  • Exclusive possession and offsets: If one co-owner lived in the home alone, reimbursement for certain items (often interest-related costs) can be limited or offset; an accounting of any rents/profits (if applicable) can also reduce claimed credits.
  • Record-keeping problems: Courts tend to rely on documentation. Missing statements, cash payments without proof, or commingled expenses can lead to smaller credits or delayed resolution.
  • Taxes have separate lien rules: Property tax payments by one co-owner can create reimbursement rights and, in some situations, a lien against the other co-owner’s share, but the statute-driven steps matter.

Conclusion

In North Carolina, removal from the mortgage loan usually ends personal responsibility to the lender, but remaining a co-owner still leaves the ownership interest exposed to the mortgage lien if payments stop. Between co-owners, mortgage payments and other preserving expenses may be treated as shared carrying costs in a partition case, and the paying co-owner can seek a contribution credit before the case ends. The practical next step is to file (or amend) a contribution/accounting request in the partition proceeding with the Clerk of Superior Court before the commissioners file their report in an actual partition.

Talk to a Partition Action Attorney

If a co-ownership situation involves disputed mortgage payments, uneven contributions, or the need for an accounting in a North Carolina partition case, experienced attorneys can help sort out records, credits, and deadlines. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Partition Action Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.