Can lender take unencumbered property?

Most times, they arent worth much.

 

You know she is still going to be concerned, though. It's going to be one of those things she's not going to be able to completely let go. Is there no other way to get the reno funds?

 

If a guarantor isn't willing to sign on as a co-borrower then they shouldn't guarantee a loan. If everyone thinks like this everyone is on the same page.

 

Thanks Paul for the response. The bank isn't wanting any further security to do the cash out. All they wanted was for my MIL to speak to a solicitor because she is on the title and needs to guarantee the cash out. The solicitor has informed my MIL that even though her property isn't securitised by the loan, that there is a risk the bank could come after her unencumbered property if this debt can't be repaid by the $1.1m securitised property.

The chances of that happening would be extremely low considering the amount of equity there is in this property but I guess anything that can be a risk needs to be disclosed even though it is a 0.001% chance.

 

She seems fine with it now after explaining it to her again. Unfortunately we only have the one property to draw equity from for the reno and my MIL is on this title so no matter what we want to do, she will always need to be involved.

 

Could she lend you the money instead?