Its purely out of curiosity to settle a "discussion" my partner and I had recently!
2007-06-13 23:07:58 · 2 answers · asked by candyfloss302000 1 in Business & Finance ➔ Renting & Real Estate
Generally only if the joint owner is added after the mortgage is taken out.
2007-06-13 23:22:00 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Anyone can pledge anything that they own as security for a loan/debt.
If you have a bank loan for a car, then the lender will have their interest noted on the title to the car so that it can't be sold without ther O.K.
The same applies to pledging a property, or at least your portion of the ownership of the property.
I'm not too certain of the effect of ownership as tenants in common v joint tenants.
I've forgotten which one is which, but in one of them, each of the owners owns a specific share of the property and can therefore buy, sell or pledge their specific share.
If the borrower defaults, the lender can seize the proportionate ownership and can then resell it. This does not affect the right of residence of the remaining proportionate owner, but you might end up with some very undesirable housemates!
2007-06-14 12:40:57 · answer #2 · answered by Billybean 7 · 0⤊ 0⤋