Posted by Tom Brown on November 24, 1998 at 14:02:45:
Since John deeded his interest to Cuz, it would seem that he is out of the picture.
I am making as assumption that John and Cuz each had 1/2 interest in the property. Since this was a private deal, the 2nd lender may only be entitled to John’s original 1/2 interest. Which would leave Cuz and the 2nd lender (or whomever emerged from the foreclosure sale) as co-owners with 1/2 interest each. This would all depend on the terms of the deal. John never had the right to pledge more than his 1/2 interest as collateral.
And there is still that 1st lien out there waiting.