Legal Question in Real Estate Law in Texas

Child on Deed

Can a lender foreclose on a child if the note is in an adults name but child on the deed only? they can foreclose on the note but not the Deed right?


Asked on 12/28/08, 1:25 pm

2 Answers from Attorneys

Cheryl Rivera Smith The Smith Law Firm

Re: Child on Deed

An attorney would need to look at the chain of title to answer your question.

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Answered on 12/28/08, 1:57 pm

Re: Child on Deed

The ownership of the house (title) and the obligation to pay (note) do not have to be the same. If the house was put up for collateral on the note (i.e. mortgage) and the adult owned it at the time, then the house can be foreclosed. The adult may have violated a 'due on sale' clause in the mortgage agreement (which prevents the transfer of a secured parcel.) There are potential criminal ramifications, if the adult is attempting to hinder a secured creditor, or if the loan was procured by fraud.

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Answered on 12/28/08, 2:21 pm


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