Legal Question in Real Estate Law in California

Re: home ownership

1. Typically, it won't change the fact that you are required to make the payments.

2. Transferring your ownership interest might be a breach of the mortgage agreement.

Re: home ownership

1. Typically, it won't change the fact that you are required to make the payments.

2. Transferring your ownership interest might be a breach of the mortgage agreement.

Re: home ownership

Technically you are still on the hook. But, if the mortgage was used to purchase the property there is no deficiency judgment available if there is a foreclosure. But, a foreclosure would still be on your credit record.

Re: home ownership

Whether or not there is a foreclosure or any problem with future payments, transferring ownership is probably going to breach a "due on sale" or similarly-named clause in the loan agreement, technically making the entire remaining loan balance immediately due and payable. I think it is pretty rare for a lender to seek that remedy so long as payments are reasonably current, but there is no need to tempt fate. Most lenders will formally waive the "due on sale" in divorce situations, sometimes asking a small fee for processing the paperwork. You are better advised to work with the lender than to take your chances with being asked to pay up!