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Loan issue

Posted on: 03rd Mar, 2011 06:19 am
Can my husband get a loan out of a property that we co-own without me signing it? If he defaults the payment, will the property be subject to a lien?
Hi softwine!

Welcome to forums!

As your husband is one of the owners of the property, he can get a mortgage on it. If he is unable to pay off the loan, then the property will be subjected to a lien. However, in order to place a lien on the property, the lender will have to get a judgment from the courthouse in his favor.

Feel free to ask if you've further queries.

Sussane
Posted on: 03rd Mar, 2011 06:25 pm
Hi Sussane,

Thank you so much for the kind help. I talked to several loan officers at my local banks. They told me that my signature is necessary for my husband to get a loan on the property. My husband also told me that too. However, many posts here (and of course your answer too) address that he could get a loan without my permission. I assume there might a condition on the deed to allow him to do so. If that's the case, what is that? Is there a way that I can prevent him from doing that?

Thanks!
Posted on: 04th Mar, 2011 02:20 pm
Hi softwine,

Some lenders will want you to sign the loan document so that your husband can secure a loan against the property as you're one of the owners of the property.
Posted on: 06th Mar, 2011 08:05 pm
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