Legal Question in Real Estate Law in California

Since you are in California, depending on the situation, the lender may not be able to pursue you for a deficiency judgment. Your credit cannot be affected if you are not on the loan, nor could they name you in a lawsuit for a deficiency (assuming they are in a rare position that they can actually do so). Feel free to call my office directly for an analysis of your situation. You can also go to my website and look under "Consultations" for more info.

Mr. Koenen is wrong. Although the loan default MAY not show up on your credit if you are not on the loan (it still may if the loan was taken out during the marriage due to community property law making it a community debt), a foreclosure on a property you own WILL show up on your credit reports. It may be too late, however, if a notice of default has already been recorded, since that will probably show up too. If you are definitely going to lose the house, however, and you don't have marital problems that the husband might take advantage of if he becomes sole owner of the house, then a quitclaim deed might insulate your credit, at least partially, from this.

You are mixing up a lot of issues, and that is why you are getting different answers, because each attorney who previously responded is addressing separate issues.

1) If the bank required you to sign the trust deed, then they think you are on title or have a property interest in the property. It is not clear whether or not you are actually on title, or the bank had this done as a precaution. In California, a nonconsenting spouse can void a trust deed executed by only one spouse during the marriage. (Droeger v. Friedman, Sloan & Ross (1991) 54 Cal.3d 26, 36-39.)

2) It is a quit claim deed, and not a quick claim deed. A quit claim deed would just change the status of title, depending on resolution of issue number 1 above. The issue is not whether you are on title, but whether you have signed the promissory note. If you have signed a promissory note, theoretically you may be liable in a future lawsuit for a deficiency.

3) You would not be insulated from a deficiency judgment under Code of Civil Procedure section 580d. You may be insulated from a deficiency judgment under Code of Civil Procedure section 580b, if the loan was what is known as a purchase money mortgage. It is not clear from the facts given whether this applies or not.