If a trust deed is made pursuant to an owner’s partial interest in a property, i.e., a partial owner takes out a loan on the property, is there any affect on that trust deeds ability to go to trustee sale?
If a loan was made against a partial interest in a property (I have not personally seen this done) then the beneficiary would foreclose on the partial interest that secured the Deed of Trust. It is very odd that any lender would make a loan to an owner with a partial interest in a property.
Thanks. A joint tenant recorded a grant deed granting to himself as a tenant in common 90 percent interest. A lender then made a loan as to his interest. If it is bought at steps would the buyer then own 90% of property?
In order to change the vesting on a property all parties would need to sign the grant deed. You may have an invalid deed which could affect the lenders ability to foreclose. If the deed is valid then the lender would be foreclosing on the 90% interest. I would definitely have a title company or an attorney review the docs. You can get a copy of the actual documents from the customer service department of your local title company. A lender that makes a loan to a TIC will typically only lend if all owners sign. Something sounds very fishy!
If the 90% interest is foreclosed upon, would the new owner or beneficiary be able to put the property for sale without the agreement by the other 10% owner?
I also saw a second loan secured by 1/3 of the partial interest of a house. In this case, if the first loan is foreclosed, I supposed this second loan, secured by the partial interest, be wiped out. Am I correct?
Thanks