land in 2 people’s names, can I use it as collateral for a loan without both people’s credit used?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
land in 2 people’s names, can I use it as collateral for a loan without both people’s credit used?
both parties are willing for use as collateral but 1 has bad credit and doesn’t want to have it included
Asked on May 9, 2009 under Real Estate Law, New York
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
How is it in your name's? I.e, joint tenancy? Tenants in common? Make sure you get the other individual's consent in writing to use it as security for a loan. However, the way it will work is the lender may not agree to loan the monies until both owners are on the loan. Further, even if the loan is only for one person, let's say the person defaulted, the land as a whole is still security for the loan. If the lender decides to collect on the defaulted loan, the lender can force a partition or full sale of the land and then pay the overage of sale if any to both owners half and half.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.