Detailed Answer

Short answer: If a co-tenant (a person who owns an interest in property with you) obtains a home equity loan or refinances the inherited property without your consent, the result depends on how title to the property is held, what documents the lender required, and whether the co-tenant acted fraudulently. A mortgage or deed of trust that was validly signed and recorded against the property creates a lien on the property and can affect all owners. You have civil remedies under Colorado law—such as asking a court to cancel a fraudulent lien, pursuing a partition (sale) action, or suing for damages—and there may also be criminal penalties for forgery or fraud.

Who can bind the property?

Colorado co-owners are generally free to sell or mortgage only their own interest in the property. If the deed shows the owners as “tenants in common,” each owner has a transferable share and can mortgage their share. In practice, lenders making loans that encumber title typically require all record owners to sign. If one owner signs without others, the lender may have a lien recorded against the property, and the practical effect can be that the recorded lien attaches to the whole parcel and clouds title.

What happens to title and the lien?

A recorded mortgage (or deed of trust) becomes part of the public land records. It creates a lien that will generally remain attached to the property until it is paid off or discharged, regardless of internal disputes among owners. If the lender obtained a properly executed and recorded mortgage from every required owner or otherwise complied with lending requirements, the lender’s lien is usually valid against the property and can lead to foreclosure if payments cease.

What if the co-tenant forged my signature or lied to the lender?

If a co-owner forged your signature, lied about your consent, or otherwise procured the loan by fraud, those acts are illegal. You can seek civil relief (to cancel or quiet the lien, and for monetary damages) and you can report the fraud to prosecutors. Colorado has criminal statutes covering forgery and fraud that may apply. Even if you did not sign, a recorded lien arising from forgery can create serious title problems that you will need a court to fix.

Common legal remedies in Colorado

• Quiet title / cancel lien: File a civil action to declare the lien invalid and remove it from the title if it was obtained by forgery or fraud.
• Partition: Ask the court to partition the property (divide it physically where possible or order sale and divide proceeds). Colorado law provides for partition actions; see the Colorado Revised Statutes on partition actions (C.R.S. § 38-29-101 et seq.). You can find the Colorado Revised Statutes at the Colorado General Assembly site: https://leg.colorado.gov/colorado-revised-statutes.
• Injunctive relief / lis pendens: You may request temporary court orders to stop a sale or foreclosure while the court decides the dispute. Recording a notice of the pending lawsuit (lis pendens) can protect the property from further transfers.
• Damages and accounting: If a co-tenant profited improperly or caused losses (for example by taking out funds and not repaying), you can sue for an accounting and money damages.
• Criminal referral: If forgery, fraud, or theft is suspected, contact the district attorney or local law enforcement to investigate criminal charges.

What if the lender relied on forged documents unintentionally?

Even if the lender was not aware of fraud, the lender’s recorded lien can still complicate your ownership. Remedies against the lender are limited if it acted in good faith and complied with standard procedures, but you can pursue the fraudulent co-tenant for damages and push for the lender to work with you to resolve the cloud on title. A court can sometimes order equitable relief that allocates losses between the parties.

Practical effects for you

• A recorded lien may prevent you from selling or refinancing your interest until the lien is cleared.
• If the co-tenant defaults, the lender may foreclose and the entire property could be sold—even though you did not consent—because the lien attaches to the real estate and foreclosure extinguishes owners’ interests subject to statutory protections.
• Clearing title can take months and cost money (attorney’s fees, court costs, possibly paying off the lien). Partition and quiet-title suits often involve litigation and expenses.

Key Colorado law references

Partition actions and remedies are governed by Colorado’s statutes addressing partition of real property (commonly cited as C.R.S. § 38-29-101 et seq.). For the full text of Colorado’s statutes, visit the Colorado Revised Statutes on the General Assembly website: https://leg.colorado.gov/colorado-revised-statutes.

When to act and what to do first

If you learn a co-tenant has encumbered the property without your approval, act quickly:

1. Obtain a current title report or copies of the recorded deed and mortgage/deed of trust from the county recorder.
2. Contact the lender in writing to explain you did not sign and request copies of loan application documents and signatures.
3. Preserve evidence (emails, letters, text messages, or witness statements) showing you did not consent.
4. Consult an attorney experienced in Colorado real property and probate/estate disputes promptly about quiet-title, injunctive relief, and possible criminal referral.
5. Consider filing a civil action quickly and, if appropriate, ask the court to place a lis pendens to protect the title while the dispute is pending.

Timing note: Colorado civil process and foreclosure/timeline priorities can affect what relief you can get and how quickly you must act. Do not delay contacting counsel if the lender has started foreclosure.

Costs and likely timeline

Litigation (quiet-title, partition, or fraud claims) can take many months and will likely involve attorney fees, court costs, and possibly expert testimony (title examiners, forensic document examiners). Settlement is common, but be prepared for expenses. If foreclosure is imminent, emergency relief is sometimes available but must be sought quickly.

Bottom line: A co-tenant’s unilateral loan or refinance can create a recorded lien that materially affects all owners. If the loan was obtained honestly with required signatures, the lender is protected and you may be bound. If the loan was obtained by fraud or forgery, you have legal tools in Colorado—civil and criminal—to attack the lien and recover damages, but you must act quickly.

Disclaimer: This article explains general Colorado law concepts and common remedies. It is informational only and not legal advice. For advice specific to your situation, consult a licensed Colorado attorney.

Helpful Hints

• Get a current title report from the county recorder as soon as you suspect a loan or refinance.
• Request the loan file from the lender (mortgage servicer) and demand copies of any documents they claim you signed.
• Preserve communications and any evidence that you did not consent (texts, emails, witness statements).
• Ask an attorney about filing a lis pendens or emergency injunctive relief if a foreclosure or sale is imminent.
• Consider mediation or settlement—often quicker and cheaper than full litigation—but only after getting legal advice.
• Report suspected forgery or fraud to local law enforcement and the district attorney if you have clear evidence.
• Talk to a real estate title company about title insurance options if you plan to buy out or refinance properly in the future.
• If you inherit property and want to prevent unilateral actions by co-owners, consider obtaining a court-decreed partition, buying out other owners, or retitling the property once heirs agree.