Posted on: 10th Jan, 2010 09:02 pm
Guest
My 3 sisters and I are all on the title of a house together. There is a contract in place that a force of sale can not be made for 10 more years. One sister would like to take out a loan on her portion of the property. She wants us to sign papers allowing the bank to have their name on the title. What are the liabilities to us if she is to default on the loan?
My 3 sisters and I are all on the title of a house together. There is a contract in place that a force of sale can not be made for 10 more years. One sister would like to take out a loan on her portion of the property. She wants us to sign papers allowing the bank to have their name on the title. What are the liabilities to us if she is to default on the loan?
Welcome turkg_turk,
Your sister cannot take a loan on her portion of the property. If she takes a loan, the whole property will be used as a collateral. If you and your other siblings are not on the mortgage, then you won't be liable for the mortgage dues. However, if she defaults the mortgage dues, then the lender can definitely come after the property.
Your sister cannot take a loan on her portion of the property. If she takes a loan, the whole property will be used as a collateral. If you and your other siblings are not on the mortgage, then you won't be liable for the mortgage dues. However, if she defaults the mortgage dues, then the lender can definitely come after the property.