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

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 [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] 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.... :(

manoj_gopale's picture
manoj_gopale | Joined: February 16, 2009 10:31 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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secshop2004's picture
secshop2004 | Joined: April 5, 2009 08:05 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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...

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi

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.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

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Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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 [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the mortgage in her name and then start paying off the debts. This will help her in saving the property.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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[size=12:d06a8a441c][/size:d06a8a441c]

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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sabrinatoss's picture
sabrinatoss | Joined: January 16, 2011 09:00 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

"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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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome John,

The co-owner of the property can take out a loan on his own. If you don't want to remain as one of the owners of the property, then you can transfer it to the co-owner.

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yeah, John, there are lenders who will make such foolish loans. What some of them don't realize is that they're jeopardizing the lien by not having all owners involved in the transaction. If they try to foreclose at some time, they'll have a miserable time doing so if he's the only borrower.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

While going through a divorce I discovered that my husband had taken out a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] on our home without my knowledge or permission. So clearly it's possible. We were living in Virginia but the bank was located in Texas. The only thing the lending bank cares about is whether or not the borrower looks like they can repay.

Rebecca

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for sharing your experience, RebeccaPi!! :)

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My brothers and sister names are on the mortgage. One brother has taken out an equity loan. Are the other brother and sister liable, if he defaults? How did he get the loan, without their consent?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Claudia,

If he defaults on the loan, then the other brothers and sisters won't be liable for it as the loan is solely in his name.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello My name is Susan. I have a big mess on my hands. My mother has asked if she can sign one of her 8 homes she wons to me and then wants me to take out a loan against the house so that I can give her money from the loan for property tax that she owes in the ball park of around 35k. I really do not want to get involved but she is my mother. My questions is: what kind of credit score do I have to have Improbably around 680-699 and owe student loan around 11K car loan 11K and credit card debt as well. Do you think I can even get this loan for my mom-even if I use the home as collateral?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome susan,

In order to get a conventional loan, you will require a credit score of around 700-720 whereas for FHA loan, you need a score of around 620. Apart from this, there are various other criteria which needs to fulfilled in order to get a loan.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my husband is the one on the loan I am on the grant deed.
He applied to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the home without my knowledge can he legally do that I am in the sate of California.

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome joe,

As your name is on the property deed, he should take your permission before refinancing the mortgage.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My siblings (2) and I own equal parts of a condo that is fully paid for. If one of us wants tomapply for an equity line against the condo's value for medical expenses, do we all have to sign?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Maxine,

A similar query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about56508.html

Take a look at it. Hope it helps you!

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mothers estate was put into a trust in 2006 and one of my brothers who was a co-trustee decided he was in charge instead . and I think he has taken out equity against the trust for his own personal reasons, some of which might include stealing the house from the other 3 inheritors. I need to know if he can get away with this, one, and where he could have done this so I can find out before we try to sell the house. The bank in town is who the trust account is with, but I know nothing. Can a realator help me find this info out?

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mary,

If a property is in a trust, then lender may normally won't give a loan. The property has to be removed from the trust to get a loan. You need to check out whether or not the property is in the trust.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

can i borrow on a joint line of credit if i am involved in a divorce

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adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Brigid,

It will be better if you could borrow money or take out a loan after your divorce is complete.

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