Hello! Thank you for your question today. My goal is to provide you with the information you seek.
Please note: (1) this is general information only, not legal advice; and (2) I will provide you with honest information and not necessarily to tell you might be hoping to hear.
I appreciate you situation and dilemma. First, you need to review the transfer/purchase documents you signed at closing. Most short sales have the buyers sign an addendum stating they buyer does not intend to sell back the property to the original owner/borrower or that the original owner may not benefit from the transaction other than being released from underneath the original loan. Most of the arms length affidavits expire near 3 years but it is contract/document specific and if no expiration than a court will determine what is a reasonable time.
So if there was an affidavit signed and it is breached then the lender could accuse you and the partners of fraud and seek to find you liable and recover damages
such as the amount of money lost in the transaction.
If no such addendum was signed (which would be unusual) or the expiration of time has expired, the risk is lower that the bank would prevail against you and the partners. However, if the lender believed this transaction was not at arms-length to begin with and that it was intended all along to sell back to the original owner, the lender could still assert a cause of action. As long as the people involved are not related or have business interest together (meaning the original owner is not part of the partnership) and an affidavit is expired or not executed the transaction would be permitted unless there was intent to defraud the bank to in the beginning.
Regardless of the legality of this transaction, morally it doesn't feel right to you as the original owner promised to repay and then failed to do so. In this situation, if the partners are insistent on doing this transaction and you do not want to take the risk or it does not sit well with you, an option is to have them purchase your interest in the partnership and then they can take the risk of selling the property without you.
All my best & encouragement.
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All states have intricacies in their laws and any information given is simply information only and specifically is not intended to be, nor does it constitute, legal advice. This communication does not establish an attorney-client relationship with you.