Legal Question in Real Estate Law in California

You need to consult with your family law attorney, because you are in a very bad position with respect to those properties. First, both Nevada and Arizona are what are referred to as "deficiency" states. The laws in Nevada and Arizona allow a lender to sue you after a foreclosure for the difference between what is owed and what the property yields in foreclosure. The property taxes are probably your husband's sole obligation, unless and until the bank advances them to "protect" their collateral, at which time the obligation to re-pay the taxes gets lumped in with the unpaid principal, interest, fees and costs. Post-foreclosure, unless there is equity in those properties (in which case I doubt your ex-husband would let them go), the potential is that the two of your may be equally liable for the deficiency, the property taxes, possibly insurance if he stops paying insurance and the mortgage company advances it and other fees, costs and interest attributable to the loan.

So, now comes the unpleasant part. Although the California (I assume) family law court awarded him the properties, unless the family law court also joined the mortgage holders into your divorce, and ordered them to remove you from the loans, then you are as equally liable for the deficiencies and other costs, just as if you still owned the properties. The bank did not, just by virtue of you transferring the property to your ex-husband, give up the right to come after you for payment on the loan. Again, you really need to talk to your family law attorney right away, as it was possibly malpractice for them to allow you to transfer those properties to your ex-husband without obtaining a refinance of the loans, or removal from the loans. You may have the right to go after your husband for violation of the divorce decree by his failing to keep up the payments, but that will require a review of the marital settlement agreement or divorce decree to determine.

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