In the housing market, what a lender can do is a court forclosure which I doesn't need your approval. Again, it all depends on the initial terms. I certainly won't lend you money without a clear term if you are ubable to pay back.
If e.g. the option terms say after you spend $1m, you earn 20%, and $2 then 40% of somehting. Your become the joint owner after the amoumt of money has been spent. It is unfortunate, however, if the asset becomes worthless later on because you own 40% of this garbage now, regardless how much you've spent.
The interesting point here is that why the iron ores assets were sold twice and how Zone registered under it name, and eventually who owns what.
I am not majored in law but these are common sense to me.