I am 1/4 owner of a property that is paid off and was wondering about a heloc and if it was possible to take out some equity to pay off some debt?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
I am 1/4 owner of a property that is paid off and was wondering about a heloc and if it was possible to take out some equity to pay off some debt?
Asked on May 26, 2009 under Real Estate Law, Alabama
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
In theory whether you hold as tenants in common or joint tenancy you can encumber your share of the property. However, as a practical matter, the creditor would want to be secured by the entire property, not just your 1/ 4 share.
In this economy it's hard enough to obtain traditional financing, I can't imagine doing something along the lines that you are suggesting. Then again, you didn't give any particulars about the property. If its got some extreme or unique value, I guess its possible.
J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney
Answered 15 years ago | Contributor
The first thing you need to do is discuss your plan of action with the other owner(s) as to you intention to encumber the property. You should speak to a mortgage broker to find out all the different ways to take money out of the property. While HELOC may be done, there may be some better alternatives out there depending on your situation, which i do not know much about. Now is a great time to get a home equity loan, but you should make sure you are getting the best rate and that the other owners are aware of it.
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.