TIC-- Rights and Duties of Co-Tenants -- Effect of one concurrent owner's encumbering the property
A jt of tic may encumber her interest (by mortgage or judgment lien, for example) but may not encumber the itnerests of other co-tenants. If, for example, one tic mortgages her interest, the mortgageee can foreclose only on the mortgaging co-tenant's interest. If a jt is involved, a mortgage (in a lien theory state) or lien does not sever the jt, but a foreclosure sale will. Note, that in the case of a jt, a mortgagee or lienor runs the risk that the obligated co-tenant will die before foreclosure, extinguishing the mortgagee's or lienor's interest.