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#66106 - 03/07/03 02:38 PM Mortgage Grantors
Anonymous
Unregistered

If two people hold title to real property, can just one of the owners mortgage the property, or do both owners need to sign the mortgage to create a valid lien?

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#66107 - 03/07/03 05:19 PM Re: Mortgage Grantors
Anonymous
Unregistered

I asked the question in relation to property held jointly by a husband and wife, and I found the answer in an FICC article, which states "Courts have held that neither spouse alone can effectively subject such property to being collateral for their individual debts." FICC News 88-11 pg. 22.

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#66108 - 03/07/03 06:19 PM Re: Mortgage Grantors
Bartman Offline
Diamond Poster
Bartman
Joined: Oct 2000
Posts: 1,191
Springfield
That was my first guess - one owner can sign but the lien won't be effective. Didn't want to post until I had a chance to research, though. I'm glad you found your answer.
_________________________
Opinions are Bartman's, not those of my employer. "A noble spirit embiggens the smallest man."

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#66109 - 03/11/03 06:21 PM Re: Mortgage Grantors
Howard Lax Offline
Gold Star
Howard Lax
Joined: Jan 2002
Posts: 478
Bloomfield Hills, Michigan
One of two owners in common can mortgage their interest in property. Of course, a lender does not want to go to court to order a partition and sale of property, so the lender will not accept less than a security interest in the whole property. When a married person mortgages property held by the entireties, there is no effect since the married couple is viewed as a single entity (except when it comes to tax liens - see the Supreme Court decision in US v. Craft).
_________________________
Howard A. Lax Lipson, Neilson, et. al. Bloomfield Hills, MI hlax@lipsonneilson.com

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#66110 - 03/14/03 04:50 PM Re: Mortgage Grantors
Anonymous
Unregistered

Are you saying that if a married couple owns property as tenants by the entireties, one of them can effectively mortgage the property on their own?

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#66111 - 04/15/03 01:05 PM Re: Mortgage Grantors
Howard Lax Offline
Gold Star
Howard Lax
Joined: Jan 2002
Posts: 478
Bloomfield Hills, Michigan
I mentioned tenants in common, not tenants in the entireties. Look at Michigan Land Title Standards.
_________________________
Howard A. Lax Lipson, Neilson, et. al. Bloomfield Hills, MI hlax@lipsonneilson.com

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#66112 - 04/18/03 01:18 PM Re: Mortgage Grantors
Anonymous
Unregistered

Quote:

When a married person mortgages property held by the entireties, there is no effect since the married couple is viewed as a single entity



You did mention tenants by the entireties, which is why I asked the question. Please explain what you mean when you say "there is no effect since the married couple is viewed as a single entity."

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