Legal Question in Real Estate Law in California

Re: Community Property

Did you make this loan with full knowledge of the facts (title report, a standard application form, etc.)? Did you know about the marriage relationship? Was title held as community property?

With the answers to these questions in mind, you might want to go through Family Code section 1102 carefully and see if it covers your loan, or falls into one or another of the exemptions.

More likely than not, if this were community property at the time the deed of trust was executed and delivered, the transaction violated FC 1102(a). Nevertheless, the transaction is valid unless the non-signing spouse attacks it to have it voided. If that were to have happened, the deed of trust would be void and you would have been an unsecured creditor of the community estate.

Since you have foreclosed already, without timely protest, the matter becomes legally quite complex. The foreclosure is probably valid, and you arguably acquired by trustee deed whatever right, title and estate was set forth in the deed of trust.

However, giving you a really solid answer would require a lot of research. An interesting situation.

Re: Community Property

This is not an easy question to answer. Record title was, I assume from your question, as follows: Borrower as to 50% and Parents as to 50%, as tenants in common. In that case the wife has no community property interest good against you and you own 50%.