HELOC and "Tenants in Common"
Hello,
If there are three members (A, B, C) in a "tenants in common" relationship of a paid off house, can members A and B take out a HELOC without C being liable for payment? In other words, if the house is appraised at $300K and A, B take out a $100K HELOC and don't make payments, is C also liable for payment even though Member C was not using and wants nothing to do with the HELOC? Or can a HELOC be setup for only Members A and B in such a way that C is protected against any such actions?
Basically A and B want to take money out of the house without having C worry about paying it back.
Thanks in advance
If there are three members (A, B, C) in a "tenants in common" relationship of a paid off house, can members A and B take out a HELOC without C being liable for payment? In other words, if the house is appraised at $300K and A, B take out a $100K HELOC and don't make payments, is C also liable for payment even though Member C was not using and wants nothing to do with the HELOC? Or can a HELOC be setup for only Members A and B in such a way that C is protected against any such actions?
Basically A and B want to take money out of the house without having C worry about paying it back.
Thanks in advance