Can a co-tenant take out a home equity loan or refinance an inherited Tennessee property without my permission?

Short answer: It depends on how the property is titled. If you own as a surviving joint tenant with right of survivorship and you are the sole owner, a lender will generally require only your signature. If you are a co-tenant (tenant in common), another co-tenant can attempt to mortgage or refinance only that co-tenant’s own ownership interest — however, a recorded mortgage or a successful foreclosure can affect the entire property’s title and your practical rights. Tennessee law gives you remedies (quiet title, partition, injunction, claims for fraud or conversion) to protect your interest, but you should act quickly.

Detailed answer — what actually happens under Tennessee law

Start with title: the consequences hinge on whether the decedent’s ownership created a joint tenancy (with right of survivorship) or tenancy in common.

• Joint tenancy with right of survivorship: When one owner dies and the title was held as joint tenants with right of survivorship, the surviving joint tenant(s) typically becomes the sole owner immediately on death. A sole owner can borrow against the property and a lender will generally require that sole owner’s signature. If you are the sole surviving owner, the other deceased owner cannot act to refinance after death.
• Tenancy in common (more common with inherited property): Each co-tenant owns an individual undivided share. A co-tenant may mortgage or refinance the co-tenant’s own share. The mortgage granted by one co-tenant normally binds only the mortgagor’s fractional interest; it does not automatically transfer legal title to the other co-tenant’s share. However, a mortgagee who records a mortgage gains a lien on the mortgagor’s interest. If the mortgagee forecloses, the lender may force sale of the property to satisfy the lien, which can result in the entire property being sold and your share being affected in practice.

What this means in practice in Tennessee:

• If a co-tenant signs a deed of trust or mortgage alone, the lender’s interest is principally in that signer’s ownership interest. But because the mortgage will be recorded, it will “cloud” the title and make resale or refinancing complicated for all owners.
• If the lender forecloses on the mortgagor’s interest, a foreclosure sale can result in the sale of the whole property (not just the mortgagor’s share). Any non-signing co-tenant is entitled to receive their share of the sale proceeds after the mortgage debt and foreclosure costs are paid, but the non-signing co-tenant can lose possession or the right to retain the property absent successful legal action to stop the foreclosure.
• If the co-tenant obtained the loan by fraud, forged signature, or by falsely representing title facts, you may have tort claims (fraud, forgery, conversion) and equitable remedies (constructive trust, injunction).
• Title issues that arise from a unilateral mortgage often lead to litigation in Tennessee: partition actions to divide or sell the property, quiet-title suits to clear title, or probate court involvement if the property is still in an estate. Tennessee recognizes partition actions and other procedures for resolving co-ownership disputes; you can see Tennessee’s statutes and case law for the governing procedures through the Tennessee General Assembly website (search: “partition” or “property actions”). For a starting place, see Tennessee Legislature resources at https://www.capitol.tn.gov/.

Common outcomes you may see

• The lender insists all owners sign; if only one signs, the loan is limited to that signer’s interest but still appears on title.
• Title becomes encumbered; you may be unable to sell or refinance until the mortgage is resolved.
• A foreclosure sale could force sale of the whole property. You would be paid your share of net proceeds but could lose the home.
• You may obtain an injunction to stop a wrongful refinance/loan if you can show immediate harm and a strong likelihood of success on your claims.

What to do right away (practical steps)

1. Check the deed and title. Confirm how the property is titled (joint tenancy vs. tenancy in common). View the recorded deed at your county Register of Deeds or get a title report.
2. Order a title search or contact a title company. Learn whether any new mortgage or lien has been recorded. Recording is public — a recorded deed of trust will show up at the county recorder.
3. Talk to the lender. Lenders typically disclose who signed the loan documents. Ask for copies of any recorded mortgage and the loan signing affidavit.
4. Preserve evidence. Keep copies of the deed, death certificate (if relevant), any correspondence, and a copy of the recorded mortgage.
5. Consider injunctive relief if necessary. If the loan was obtained by fraud or forged signature, a Tennessee court can (in appropriate cases) enjoin the lender or co-tenant and set aside transfers.
6. Talk to a Tennessee real estate or probate attorney quickly. Timing matters: foreclosure timelines, statute of limitations, and probate deadlines can affect your options.
7. Possible litigation options to discuss with counsel: partition action to force sale and receive your share, quiet title to remove a cloud on title, claims for fraud/forgery, or a constructive trust if the co-tenant misused funds or deceived you.

Relevant Tennessee authority and resources

Tennessee’s statutes and case law govern partition actions, recording of instruments, and probate procedures. For statutory text and searches, use the Tennessee General Assembly website: https://www.capitol.tn.gov/. Search there for terms like “partition,” “deed of trust,” “recording,” or “probate” to find the specific code sections and procedures that apply.

County-level offices (Register of Deeds) handle recordings and can show you the chain of title and any recorded liens.

Helpful Hints

• Always verify how title is held. That single fact often determines your rights.
• Recording matters. A mortgage that’s not recorded may be harder to enforce against third parties, but most lenders record liens promptly.
• Don’t ignore foreclosure notices. Respond and consult an attorney immediately to avoid losing your interest.
• If you suspect fraud or forgery, preserve documents and consider a legal hold on communications so evidence isn’t destroyed.
• Contact your county Register of Deeds for copies of recorded documents if you can’t access them online—this is often the first step in confirming what happened.
• Consult a Tennessee real estate or probate attorney. An early consultation clarifies your options: injunction, quiet title, partition, or claims against the co-tenant and possibly the lender.

Final note and disclaimer: This article explains general principles under Tennessee law but is not legal advice. Laws vary with facts and change over time. For advice about your specific situation, contact a licensed Tennessee attorney who can review the deed, loan documents, and records and recommend immediate next steps.