Please Help: 2nd mortgages and liability

[nedstein]

What is the name of your state? NJ
I own a property with a family member(original mortgage has been paid off). This person wants to take out a second mortgage on the property.

Do they need my signature to do this?
Am I resposible fo rthis money if they fail to make payments (they have had numerous financial problems in the past)?

I don't know what to do - this equity is my childrens inheiritance and I don't want to risk it but this is my sister and I don't want to basically kick her out of her house (she wants to sell the property if she cant get 2nd mortgage b/c she needs cash)

 

[Ummonx]

I am not a lawyer.

since both your names are on the deed, I believe she needs your signature to take a mortgage or sell the house. While I am not sure, I doubt they allow mortgages for partial ownership/equity.