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In a title situation, I have never known a lender who would not want all the property owners sign the mortgage. Now, the note is another subject altogether. Any one or all of the owners may sign the note; however, they will be responsible for the payment of the note. The mortgage merely securitizes the note.

This is a great point and something I had glossed over. If the mortgage is refinanced with only 1 or 2 of the 3 owners, then 1 or 2 owners may be on the note, but all 3 will most likely remain on the mortgage. For example I Googled up this quote:

"A note is signed by the people who agree to pay the debt. A mortgage is signed by those who own the property being mortgaged."

So from a tax perspective, do you report the mortgage interest on your taxes if you are on the note, or the mortgage? In my example, 2 owners are on the new note but the third is not. The third person is not obligated to pay the interest, so can they declare that interest as an expense on their taxes? You would think not. But if not, would the interest be split among the other two owners, according to their percentage interest in the mortgage?
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