Legal Question in Real Estate Law in California

I am divorced since 2010, signed a quit claim deed for our property to my ex-husband (which he was awarded in our settlement and all encumbrances thereon and forever releases me of liability for anything monetary with respect to the house, includes fees for late payment, short sale or foreclosure, any unpaid taxes, etc. ) and I am off of the property tax roll. I have not lived in or paid any cost of maintaining that home for over 2 years. He is now going to short sale the property.

Do I have to sign any paperwork for him to do this?


Asked on 10/24/11, 3:05 pm

3 Answers from Attorneys

If he did not refinance the property into a loan in his name alone, you will need to be a party to the short sale agreement, and you will need to make sure you are protected from any continuing liability to the lender. Just because he agreed in the divorce to take responsibility for the loan doesn't mean that is binding on the lender. Also, if you are still on the loan this will adversely affect your credit as much, or very nearly as much as a foreclosure.

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Answered on 10/24/11, 3:35 pm
Anthony Roach Law Office of Anthony A. Roach

I agree with Mr. McCormick. The lender may want you to sign off on the short sale. In addition, if handled with a title company, some title companies may want you to execute an interspousal transfer deed, instead of a quit claim deed. It really depends on their preference and internal policies, more than it does the law.

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Answered on 10/24/11, 3:36 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Yup. Getting "off title"is easier than, and totally different from, getting off the loan. In an ordinary sale, you wouldn't become involved, but a short sale is a transaction requiring negotiation with, and approval of, the lender.

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Answered on 10/24/11, 8:44 pm


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