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 daltonsjr
Joined: 22 Jul 2008
Posts: 13
8.34 Dollars($)
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 Posted: Mon Dec 15, 2008 2:52 am Post subject: 5 siblings quitclaimed 4 properties in NYS |
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| If 5 siblings have their name on deeds for 4 properties(no mortgage-paid full), is it possible for one party to get a line of credit or refinance for cash, their fifth of the property if the others are OK with it or do all parties have to apply for the loan? |
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Niicss
Joined: 03 Oct 2005
Posts: 3227
Location: New Jersey
509.11 Dollars($)
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| Posted: Mon Dec 15, 2008 3:25 am Post subject: |
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Hi daltonsjr
If you are speaking about one single property where one of your siblings wants to take mortgage on a portion of the property, then I don't think the lender will agree to it. But if it's a separate property owned by that sibling, then he can use it as a collateral to get the mortgage.
If the sibling who wants to take the mortgage on the property has a good credit score and income, then he can take the mortgage alone in his name. If his credit is not good, then lenders won't agree to give a mortgage. In that case, anyone of the other siblings with a good credit can co-sign for him.
Thanks.
_________________
Good is the Enemy of Great. |
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daltonsjr
Joined: 22 Jul 2008
Posts: 13
8.34 Dollars($)
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| Posted: Mon Dec 15, 2008 5:45 am Post subject: Just to clarify |
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You stated----------If the sibling who wants to take the mortgage on the property has a good credit score and income, then he can take the mortgage alone in his name. If his credit is not good, then lenders won't agree to give a mortgage. In that case, anyone of the other siblings with a good credit can co-sign for him. _--------------
My question then would be-----
There are several properties and if one of the properties, that has all of our names on it is fully paid for, then it's possibel to take the mortgage out in his name on that one oroperty, even though other names are on the deed and the sibling only has a legal right to 1/5? If the credit is good?Could the banks put language into a loan that even though the property is co-owned that the 1/5 loan would be the responsibility on the one taking the loan? If the other sibs agreed in writing? Sorry, if I sound confused, but it's new to me.
And thank you so much for your answer. |
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jheard
Moderator
Joined: 12 Dec 2007
Posts: 620
Location: Houston, TX
101.15 Dollars($)
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| Posted: Mon Dec 15, 2008 10:19 am Post subject: |
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Legally, a single owner of a multi-owner property can mortgage his share. However, no commercial lender will agree to that; they will require all property owners to sign the loan.
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Disclaimer: This is not legal advice and I am not your lawyer. The information provided in this forum is for discussion purposes only, and is no substitute for an in-person consultation with an attorney who can analyze all of the facts and determine how your state and local laws may apply to your specific situation. |
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| Posted: Mon Dec 15, 2008 3:35 pm Post subject: |
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| Yes, they can mortgage their 1/5 interest, if a lender will take that as security on a loan. I have seen it done where the bank already has other primary collateral, such as a mortgage on one's home, or other property, and they will take collateral like this as additional security. |
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