Legal Question in Real Estate Law in California
I own a home in CA and it is going into foreclosure. If my wife and I vacate the house but our adult child remains in the house, are we liable for the condition of the house until the property has officially been foreclosed and deeded to the bank?
5 Answers from Attorneys
I'm sure you've explored your situation with a bankruptcy attorney, and you know that filing for Chapter 13 will instantly stop the foreclosure, right? After the foreclosure you should negotiate some "key money" in return for vacating the property in good condition. Get everything in writing and make sure you are dealing with an authorized representative of the bank!!
Yes. If the house gets damaged, the lender can sue you later for bad faith waste, and is not precluded by California's anti-deficiency legislation, or the one action rule from doing so.
You are legally on title until the trustee sale. If anyone is injured on the property, for instance, you are liable. Have you offered the lender a deed in lieu of foreclosure?
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I'd go a step further and say you are potentially liable for any serious problem with the property not only until it changes hands upon a trustee's sale, but also until you and your family have turned over possession to the new owner.