Legal Question in Real Estate Law in California

Re: Real Estate Question

First of all, it is a "quit claim", not a quick claim. Secondly, by deeding it over to your ex you are relinquishing any control whatsoever and are still on the loan and the bank could care less about your divorce papers. Whether the bank can come after you in the event your husband loses the house depends upon the type of loan it is...if the loan in issue was created at the time of the original purchase of the home, they are likely precluded from doing so, as the loan would be "purchase money", or non-recourse. If, on the other hand, the loan is a refinance loan made after the time of the original purchase, then it no longer has protection from a deficiency judgment and the bank could, if desired, pursue you for any sum they lost in the transaction.

Re: Real Estate Question

First of all, a quit claim deed will only transfer your interest to your ex-husband. In other words, it removes you from the tile/ownership of the property. However, this in itself will not get you off the loan. This will require a refinance of the loan or consent by lender to release you. The latter is unlikely to happen.

The loan is what will affect your credit. You need to confer with an attorney to review your divorce papers concerning the sale of the house and what recourse you may have.

Depending on several factors (such as the loan origination, loan type, method of foreclosure, etc.), you may be liable for a deficiency judgment if the lender were to foreclose and there is insufficient proceeds to pay off the loan.

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Re: Real Estate Question

Your concerns may well be valid. If the dissolution agreement was done certain way, you should be able to force a sale or maintain a secured interest such as a lien. Remember your secured interest may arguably not be in the property such as a mortgagee has, but it is in the equity in the property. I cannot tell yet whether you have a secured property interest, or just a a contractual obligation. I suspect if your ex is not in a position financially to buy you out, you may have to pursue legal options. Please feel free to call me for assistance. My first question will be, "prove to me how much equity is in the property."

Regards,

IMPORTANT:

No attorney-client nor confidential relationship is created through this communication. You may not rely in any way on this attorney, or any communication from this attorney, and nothing constitutes legal advice nor legal opinion. Your issue may be time sensitive and may result in loss of rights if you do not obtain an attorney immediately.