From this perspective, yes, I am still legally responsible.But how can both people be legally responsible for the same loan?

The truth is, people are suckered by this all the time.

I am obviously conflicted with the moral side of pursuing legal action here, but understand that people can do untruthful things when it comes to financial gains. 

I've done this with my properties because I'm well known in my small town and don't want people to know what I own.

It's a great way to talk through your plans and goals for real estate with people that actually understand! 

It is big but I am hearing now people want dishwashers and w/d in units.

Then, I would share with them how you manage properties and what your expectations are for them as well as you - essentially explaining how you work with people renting from you.

My experience has been that although I outline the requirements for tenancy in my properties, both brokers and PMs still send people who would qualify for most property owners but do not meet my outlined criteria; and then are SHOCKED when I reject them.  

One thing to remember when you are getting into RE investing is to have your team of people or as Brandon Turner from the Bigger Pockets Podcast calls it your CORE 41.

Lenders will want to see the filed Articles of Organization, an Operating Agreement that you can get from your attorney or, if you're brave and it's just you on the LLC, some people use Legal Zoom or Law Depot.