Hi I currently have a $30k loan on my $1.1m property and want to draw $200k in equity for renovation. Problem is that my mother in law is on the title with my wife and I. In order to do the cash out with BOM, I had to go see a solicitor with my mother in law to discuss the risks. She was told that there is a possibility that the bank could take her own unencumbered property (not being offered as security) if we default on this loan. Now she is scared to go ahead. Is that true? Can a bank take a guarantor's unencumbered property to repay the debt even though it's not offered as security? I have heaps of equity in my home to repay the debt but now my mother in law is stressed about potentially losing her home.