Legal Question in Real Estate Law in California

I recently parted ways with my boyfriend with whom I share legal obligation on a home mortgage in CA. The value of the home is $170,000 and the outstanding mortgage balance is $295,000. Neither of us are living in the home. I would like to foreclose on the property and begin recovering from the credit hit while also benefiting from current tax legislation which leaves me free from incurring a tax penalty for the difference between the home value and the outstanding balance. Unfortunately, my ex will not listen to any financial advisor that walking away from a $20,000 down payment is the best decision. He plans to rent the house and make up the difference himself. He would like to sue me for not helping with that payment. Can I force a foreclosure/short sale or otherwise protect myself from tax liability from a foreclosure in 3 years? I am being asked to file a Quit Claim, but, am hesitant to do so if it will impair my ability to take other protective actions. I have no interest in profiting from the property at a later date.


Asked on 1/11/10, 8:53 pm

1 Answer from Attorneys
Melvin C. Belli The Belli Law Firm

Yes you can file an action for partition and force a sale. Signing a quitclaim will only release your interest in the property and it WILL NOT RELEASE YOU FROM THE LOAN, that is why you will need an agreement to sell it or you should file a partition action in which the court will then order a sale.

Hope that helps and good luck.

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Answered on 1/17/10, 8:59 pm


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