Legal Question in Real Estate Law in California

The answer can not be given without looking at the mortgage contract. Unless there is a provision dealing with advanced or larger than minimum due payments, then the buyer can do what he has. That is one entirely legal technique that is used to reduce the overall interest that is paid on a loan. Basically, the mortgage provides that $X is to be paid and that it must all be paid at at least $853.26 per month and must all be paid by 30 years, with the unpaid portion subject to Y% interest. So if the entire loan were paid off immediately on the signing of the mortgage, only $X need be paid. If the entire amount were paid off exactly one year after taking out the mortgage, the total amount that the buyer would have paid is $X plus Y% interest on $X. Usually advance payment first go to the interest currently owed and anything left over goes to the remaining principal. If the interest payment were $500 per month [$120,000 original amount at 5%], and the buyer paid $10,000 in the first month and $500 for the next 11 months, then there would have been $6,000 in interest paid and the loan principle would have been reduced by $10,000-$500=$9,500.

So the principle on the mortgage has been reduced by $12,000. Some mortgage documents do not allow the principle to be paid early, but you did not indicate that is the case for the mortgage you hold.

Your husband could not add your name as co-owner of the property because he did not own it, merely having a lien in the form of a mortgage against it. Adding your name to the note/mortgage does not change the relationship between your husband and the buyer of the house, as that is a contract whose terms can only be modified upon mutual agreement of all parties. adding you would only effect the economic relationship between your husband and you. So you should be careful in jumping to conclusions as the only one who may have acted incorrectly was your husband.