Legal Question in Real Estate Law in California

I own the property with another person as tenants in common since May of 2006. The property in currently "under water". The total loan amount is $800K. We are about to go foreclosure. I am not any more in the relationship with the co-owner and we can not come to the agreement about proceeding with a short sale. I had a consultation with attorney who told me about the possibility to remove one of us from the title and from the loan note after the delinquent amount ($80K - unpaid mortgages for 18 months) will be paid off. I am a professional, have my private practice as a psychotherapist and have apartment as well as retirement fund. Originally we received a loan b/c of my assets. Another co-owner is undocumented in this country but has SS# and valid driver license, he does not work and lives at the house which belong to his parents. My question is regarding the possibility of being removed from the title and loan documents without refinancing and will bank do it?

The property never been our primary residency and was observed as a second home. We never lived there due to the extended remodeling which was going on there.

Look forward hearing from you.

Tania

Is that possible to be removed from the loan documents without refinancing


Asked on 4/19/10, 8:06 pm

3 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

If you have 18 months of unpaidmortgage instalments, I'd think a foreclosure will take place before the three of you (?) can agree on anything that would prevent the foreclosure, and a foreclosure may be the best thing that could happen.

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Answered on 4/24/10, 8:53 pm
Ken Koenen, LLM Law Office of Ken Koenen

The bank will not take you off the loan. It can only be done with their permission, which I do not see occuring. You need to find out whether there can be tax issues for you and if there can be a deficiency judgment against you if there is a short sale. Do not sign anything without having it reviewed by legal counsel first.

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Answered on 4/25/10, 11:14 am

If you have an attorney who knows all the facts, you should not be asking questions here. Ask the attorney you consulted, or find another attorney to help you with this. There are too many complications in what you describe, and too many questions any good attorney would need to ask you before advising you. There is no way to give advice on this on a free bulletin board.

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Answered on 4/26/10, 4:31 pm


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