Legal Question in Real Estate Law in California

I don't see why you're entitled to any of the money, without more information. You refer to him as your ex-husband, so you must be divorced. Ownership issues of property should have been addressed in any judgment or marriage settlement agreement during your divorce. You omit that information altogether. The fact that you are on title simply indicates that you have not cleared that issue up in compliance with a judgment or marriage settlement agreement. It sounds as though the lender issued the check based on the condition of record title, and not based on any actual ownership issues.

Sounds like a "cash for keys" offer where the buyer at foreclosure offers the occupant some cash to take a hike, rather than sue for unlawful detainer or exercise some other remedy and wait for the results. Without knowing details of the marriage settlement agreement (which in any event aren't too likely to affect the result), I'd be inclined to agree with Mr. Roach; the money is being offered to the person in possession as an inducement to surrender possession, and is not like purchase money, The buyer at foreclosure already owns the property.