Can bank foreclose - only one of two owners on security deed

[12345672]

What is the name of your state? GA

If a property is owned be two people, and one gets a mortgage without the other's knowledge, can the bank take action against the property? About 80% of the value is owed.

The security deed is only signed by one of the two parties. The warranty deed, naming both was properly recorded years earlier, so there shouldn't be any claim of ignorance on the bank's part with regard to who all owned the property.

Can the bank demand the property be sold and collect on half?

 

[FlyingRon]

The bank can foreclose, the property sold, and they can collect as much of it as they need to pay off the obligation. While multiple parties can have an interest in the house, you can't get a mortgage on half the house. The mortgage was on the full thing.

Just how did this come about? I find it hard to believe a bank would give a mortgage for a property that had names on it who were not subject to the mortgage. Did you get your interest in the property after the mortgage?

 

[12345672]

Did you get your interest in the property after the mortgage?

The warranty deed, naming both was properly recorded years earlier

I find it hard to believe a bank would give a mortgage for a property that had names on it who were not subject to the mortgage.

I find it hard to believe too, but it happens.

I question the enforceability of the security deed, since only one of the owners signed it.

 

[12345672]

I was hoping for more responses.

Thanks FlyingRon for your response.

I've read on some other websites how some other states have become much stricter with regards to mortgages, to the point of declaring some mortgages void if they are not signed by the necessary parties, but this may not be the case in Georgia.

- So basically, in the state of Georgia only one of the owners of a property is required for a mortgage.
- If a mortgage is obtained by one owner of a property secretly without the knowledge of the other owner, the bank can still foreclose, even though the other owner never consented to the mortgage at all.
- The owner of the property that had no part in the mortgage other than being a owner of the land, can't do anything to prevent foreclosure other pay the other owner's mortgage.
- The only recourse of the owner not on the mortgage then would be suing the other owner that mortgaged the property.

Right? Some of the things that I have found searching other sites seem contrary to this, but they were in different states.

Can anyone point me towards resources that apply specifically for Georgia? Any caselaw of similar situations?