If Ii own a house with my 3 brothers, can1 of my brothers take out a home equity loan without our approval?

UPDATED: Aug 22, 2011

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If Ii own a house with my 3 brothers, can1 of my brothers take out a home equity loan without our approval?

Asked on August 22, 2011 Pennsylvania


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If a lender is willing to loan one of your brother's money and the security for the loan is the brother's ownership interest in real estate that he has with you and your other two brothers where a home equity loan is taken out, this could possibly be done if the lender is willing to secure the loan with your brother's fractionalized interest in the home.

However, your and your other two brother's interests in the home would not be affected by any secured interest in the home if the loan is made to your brother. The reason is that you and the other two brothers would not be on the loan. If your brother who is obtaining the loan fails to make payments on it and his interest is foreclosed upon by the lender, you and your other two brothers would have a new "partner" owning an interest in the home.

Practically speaking, I do not see a lender loaning on the home and taking a secured interest in your brother's ownership interest in the home.

Good luck.

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