Can someone not on the deed to a home pull out cash equity with the homeowners permission?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can someone not on the deed to a home pull out cash equity with the homeowners permission?
My mom’s house was paid off and she pulled a refinance mortgage on her home to help me purchase a property for cash. We went to an attorney and had a mortgage drawn between us, so she is my mortgage holder. In a couple of years she wants to purchase a new home for herself, and keep her current property as a rental investment. since she used the equity from her home, can she pull out the cash from my house, being that she is not on the deed? Is there legal permission I can give her to do this?
Asked on September 3, 2012 under Real Estate Law, Florida
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
No, only the actual property owner (the person(s) on the title) have the right to refinance a home or "pull out cash equity" from it. Nothing would stop you, if you are the owner(s), from refinancing and lending/giving the money to her--but then, of course, you'd be liable to the bank. You could have her execute an agreement under which she'd indemnify you and make the payments, which would let you proceed against her if the bank proceeded against you--but the bank would still be able to hold you liable.
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.