can I be responsible for legal issues my husband faces?

San Diego, CA Viewed 56 times. Posted 5 months ago in Foreclosure

My husband has not paid the house note since January. Does not want me calling the lender because I will mess up things he is doing. He believes the banks have violated contract and they cant kick us out. I wanted to move into an apartment by Sept becuase I hope to have a job by then and can show 2 mos worth of income.
He also has our name on property that he gave interest in the home being built and the partner is threatening him if he does not sign contracts to keep loan money coming in. I dont know how that works but my name is on the property. - Is this your question? Add additional information

Answers (2)

Shaun K. Boss

This attorney is licensed in California. Posted 5 months ago.

You are responsible if to the lender(s) if you signed the loan documents. The lenders may foreclose if there is a default in payment and you can lose your interest in the property. California is a community property state and your community property may also be at risk for the payment of community debts.

If the bank violated lending laws when your loan was originated, you may have claims against the lender. The lender will still be able to foreclose unless you take affirmative steps to raise those claims by filing suit against the lender. This is usually done in connection with an attempt to stop the lender from foreclosing.

There is also an important distinction between "purchase money" loans (loans taken out at the time you bought the property) and refinancing loans for residential property. If the loan is a refinancing loan, the lender may be able to sue to foreclose the property and get a "deficiency judgment" against you. This is more likely to occur in the case of a loan in second position where the property has declined in value to an amount which is less than or equal to the balance owing on the loan in first position.

This analysis and questions such as whether you may be able to obtain a loan modicfication or sell the property as a "short sale" are very fact dependent. You should probably get legal and tax advice which is specific to your circumstances.

Andrew Ryan Stilwell

This attorney is licensed in California. Posted 4 months ago.

Since the debt is in both of your names, you are equally responsible for the mortgage debt. Additionally, any seperate property debt that your husband takes on can also hurt your if it was created during your marriage. In that regard, your half of the community property assets are also at risk. It is very difficult to prove that the banks have violated their lending contracts, and I would not rely on such a cause of action without an opinion letter from experienced legal counsel stating that your husband is correct. Without which you are letting your husband steer the boat, but you both my sink.

If you would like to discuss you options more, please feel free to email me at andrew@stilwellassociates.net

This is informational only and is NOT intended to create any attorney client relationship between the asker of the question, any reader of the answer, Stilwell & Associates, Andrew Stilwell, or its affiliates. This information is given with insufficient facts to give the asker of the quesiton and any reader of the answer sufficient basis to reasonably rely on this information. This notice is given to disclaim any such attorney client relationships until such time as a valid express written services agreement is executed by all parties and proper retainers have been deposited.