Owen Monie obtained a loan from Home Banc to help pay for his tuition at Big University. Owen granted the bank a mortgage on his home as security for the loan and the mortgage was properly recorded. The loan agreement and mortgage were silent regarding Owen's right to sell the house. During an inspection with his real estate agent, Owen discovered some of the piping in the house consisted of polybutylene, a type of plastic known for breaking. Three months prior to graduation, Owen sold the home to Cole Dusack. Since only a portion of the house contained the questionable piping and the cost to replace the entire system was estimated to be around $7,500, Owen did not disclose the presence of the polybutylene pipes. Cole did not expressly assume or agree to pay the loan Owen took out for his tuition and the bank did not expressly approve or disapprove of the sale, nor did it agree to release Owen from the liability of the loan. Seven months after the deal closed, a pipe broke causing over $10,000 in damages.
Was Owen entitled to sell the home even though it was subject to a mortgage?
Is Owen still liable for the loan?
Is Cole obligated to pay the loan?
What remedies does Cole have against Owen related to the sale of the house?
Does Cole or Owen have a cause of action against any other party?