Can someone not on the deed to a home pull out cash equity with the homeowners permission?
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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 12 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.
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