Legal Question in Real Estate Law in California

I am sorry for your situation. Normally, with your husband name being the only one on the deed you would have no ownership interest in the property, so whatever you do does not matter. Also, in bankruptcy the secured debtors are paid first so the lender would get the home [I do not know if it would have any effect upon their being able to go after you for any unpaid portion of the loan whilch then becomes an unsecured debt]. Since there will be probably at least six months before the foreclsure sale, you have enough time to file for bankruptcy, I just do not see it helping at all.

I assume that the purchase price and mortgage have come form community funds so you are an equitable owner wilth your husband a legal owner, each having the exact same interest. Short sales are dilfficult to arrange because the lender often is very slow iln approving the price; if they will not agree to foregive the balance of the loan, the short sale appears to have a positive effect only in that a default doew not appear on your credit record.

I have no personal knowlege if they are successful and which are legitimate, but you could hire one of the many loan modification law firms that advertise they can get the banks to drop the principal [one salesman I spoke to said that now instead of a possible 50% reduction he only quotes a likely 10% reduction, which probably is not enough to solve your problems].

I would answer a little differently.......a Chapter 13 bankruptcy is not a liquidation, it is a reorganization of the debtor's affairs designed to allow debts to be restructured and paid. There is a set of rules for qualification, and having sufficient income to do a debt restructuring is, I think, part of the requirements. You really should re-ask your question under the bankruptcy topic heading on LawGuru, or seek a consultation with a bankruptcy attorney (or two) in your community.

I would not assume your interest and your husband's are identical. They might be, but it could be anywhere from 0-100 to 50-50, depending upon the financial history of his ownership. That is a family law issue. Also, it is secured creditors who get paid first.

I concur with co-counsel. Unfortunately, the lenders are refusing to do anything to actually assist people in your situation...they do wait until you are in default status. I have faced this issue as well and it is very frustrating.

I just caution you to be wary of these people who make crazy claims on television and the radio. Make sure you are dealing with an attorney and not just an assistance company.

You can check and attorney's cedentials at calbar.org. I can recommend someone her in So. Cal. I do not know if he travels to N. Cal, but it could not hurt to ask.

If you would like to discuss this matter further in a more private forum, please feel free to contact me directly at the email address provided by LawGuru or through our firm�s website located at PasadenaEstatePlanning.com

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