Legal Question in Real Estate Law in California

Re: realstate

If you are a co-borrower on the loan, the foreclosure and poor payment history will show up on your credit report. If you are not one of the borrowers, the only impact the foreclosure should have on you would be the loss of the title to the property.

Re: realstate

I think it's important to know more about how the lien being foreclosed was created in the first place.

If you are not a co-borrower or a co-debtor on a judgment lien, in most cases the creditor cannot foreclose on your half interest, and must be satisfied with foreclosing and selling the debtor's interest in the property alone. You would remain an owner but you'd have a new co-owner and the two of you would be tenants in common. Your credit would probably be unaffected.

As I said at the outset, answering this question with confidence would require knowing more about how the lien was created, but in general the principle is that a joint tenant will not lose his or her interest in the jointly-owned property through any set of facts involving only the other owner's fault or liability.

Re: realstate

The forclosure will also be recorded under your name, which will remain on your credit reports for 7 years. Furthermore if there is a junior lien (non purchase money) the lender can sue you for a deficiency (money judgment). You can call and hire me to negotiate the forclosure with the lender.