Legal Question in Administrative Law in California

Any transferable interest in real property, including the part interest of a joint tenant or tenant in common, can be pledged as collateral for a loan. However, the interest(s) of the other owner(s) do not become collateral. Only the borrower's interest in the property can be made subject to the lien. If there were a default and foreclosure, only the borrowing co-owner's interest in the property would be subject to foreclosure -- meaning that your husband theoretically could end up with a bank or a stranger as his co-owner. Since part interests in residential real property aren't very attractive as collateral, most lenders will only lend a small fraction of the market value, making repayment more likely. If you are concerned about the borrower's ability and/or intention to repay, get a copy of the loan documents from the county recorder or elsewhere and take them to a local real-estate lawyer for an initial review and comments.