Can a co-owner get a Home Equity Loan without informing other co-owner?

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Icon Mini Profile secshop2004

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Post Posted: Sun Apr 05, 2009 8:05 pm    Post subject: Can a co-owner get a Home Equity Loan without informing othe

There is a house that is co-owned by two people (unmarried, both names on mortgage and deed). I am trying to find out if Co-Owner #1 can get a home equity loan without informing/telling Co-Owner #2.

If this is possible, how would Co-Owner #2 figure out what loans or lines of credit have been taken out with the house as collateral.

Thanks for your help. This is a messy situation.... Sad
Icon Mini Profile manoj_gopale

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Post Posted: Sun Apr 05, 2009 9:33 pm    Post subject:

In order to take a equity loan one need to take permission of both the co-owner if the amount is really a big amount.
I am curious why you do not want to mention the names of second co-owner.
Icon Mini Profile secshop2004

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Post Posted: Mon Apr 06, 2009 6:36 am    Post subject:

I am sorry, I guess I didn't explain it very well. I am actually Co-owner #2.
I suspect that Co-owner #1 took out a loan without my knowledge in order to use as a downpayment on a new home. She wants to sell, I do not (we would take a huge loss). Co-owner #1 had already presented this as an option a few years ago and now that we are disputing the sale of the house and she is packing and has a new home (I don't know the exact details), I believe she has taken out a loan.

I am not sure where she got the funds, but I am concerned I am at risk if she stops paying the mortgage or her loan.

Does that make it more clear? Basically, I am trying to find out if I am at risk, what my options are, and how to find out this information (since my name is on the deed and mortgage).

Thank you for any additional assistance. I just dont know where to turn...
Icon Mini Profile savior70

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Post Posted: Tue Apr 07, 2009 7:26 am    Post subject:


I don't think she can get a home euity loan without informing you. As you are on the title, you are a legal owner of the property and have an interest in it. I don't think a lender would be ready to provide a loan on the property which she doesn't have a free and clear title to. But you need to make sure that you pay off the existing mortgage on the property to avoid a foreclosure. As she plans to move out it won't matter to her if it is foreclosed on. But you need to be current on the mortgage if you want to keep it.


Post Posted: Wed Mar 31, 2010 12:24 pm    Post subject: home equity loan

can one spouse get a home equity loan in their name only without the other spouse, even though they are both on the title?
Icon Mini Profile sara

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Post Posted: Thu Apr 01, 2010 2:06 am    Post subject:

Hi cindy,

Though both the spouses are on the title of the property, one of the spouses can take out a home equity loan without the other spouse provided that spouse satisfies the required criteria of the lender.

Take care


Post Posted: Fri Apr 09, 2010 8:09 am    Post subject: home equity / foreclosure

My dad took a home equity loan out on his condo which he
co-owns with mom. He has a mental illness and stopped taking
medication and now cannot function mentally. He has stopped making
loan payments and they threaten foreclosure. My mom is not on
the loan so she cannot speak on the account. Can the bank foreclose
if she is in the title but have no say in the home equity loan?
Icon Mini Profile Niicss

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Post Posted: Sat Apr 10, 2010 3:17 am    Post subject:

If the bank does not receive their payments on time, then they will have the rights to foreclose the property though your mother's name is on the property deed. Your mother can refinance the mortgage in her name and then start paying off the debts. This will help her in saving the property.
DeeDee Donna


Post Posted: Thu Oct 28, 2010 11:43 am    Post subject: Refinancing

We purchased a home, then refinanced it and I think my husband is trying to refinance again and both our names are on mortgage, me as co-owner. Can he get the house in his name only. He wants a divorce. We live in Colorado. Donna
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Icon Mini Profile smithsussane

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Post Posted: Fri Oct 29, 2010 2:17 am    Post subject:

Hi DeeDee!

Welcome to forums!

Unless you sign a quitclaim deed and transfer the property to him, your husband won't be able to get the house in his name. However, as far as the mortgage is concerned, he can refinance it in his name.

Feel free to ask if you've further queries.



Post Posted: Tue Jul 19, 2011 1:05 pm    Post subject: Home Equity Loan

Can the majority owner of a jointly owned home take out an equity loan without the written permission of the other two owners in New York. This is a second home and we need an answer rather quickly. Thanks.
Icon Mini Profile adonis

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Post Posted: Tue Jul 19, 2011 10:41 pm    Post subject:

Welcome suzanne,

The person taking out the loan should inform the other two owners about the loan. However, that person can take out a loan depending upon his credit scores and income. The other two persons won't have to be a party to the loan.

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Icon Mini Profile sabrinatoss
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Post Posted: Wed Jul 20, 2011 1:20 am    Post subject: hi secshop2004 !

You both owned the loan, so you have both rights to tell what are your plans with it. And getting an equity loan without your approval is not possible because it should be both sides of the party that has to approved it.
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Icon Mini Profile gmakerley
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Post Posted: Wed Jul 20, 2011 12:20 pm    Post subject:

"Owning" the loan is a misnomer. What can take place is this - your partner can take a home equity loan, but any lender who would do such a loan is foolish, to say the least.

Here's why...if your partner doesn't pay and the lender needs to take action against him/her, the lien that they've placed on the property will not be valid inasmuch as the two of you were not included in that transaction. That's a whole mess for a lender to get into.

Does it happen on occasion? Sure it does. Does it work out for everyone involved on occasion? Sure it does. Does it not work and cause multiple headaches all around on occasion? Sure it does.

You need to have a heart-to-heart talk with this third partner and dissaude him/her from taking such a step. It jeopardizes a lot if it actually happens.

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Post Posted: Wed Aug 03, 2011 2:02 pm    Post subject: Home equity loan on a co-owner property

I want to know if the co-owner of my property can take a home equity loan in just his own name. My credit score is bad but his is good, or does the property need to be in his name only....
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