Legal Question in Real Estate Law in New Jersey
house
can i use the deed to my house as collateral without involving the co-owner.
2 Answers from Attorneys
Re: house
In theory yes but few lenders would accept a 1/2 ownership as collateral since they might have a co-owner if you default on the loan and they have to foreclose on your half of the property. Also, if the co-owner is a spouse or otherwise has a "right of survivorship" such that the whole property goes to them if you die, you can see why a lender would be reluctant to lend to you based on this collateral. Finally, husbands and wives who own real estate together cannot "sever" joint ownership on their own. It has to be by mutual agreement or a court order. Since the ownership cannot be changed with your spouses consent, such collateral would be worthless to a lender.
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