Legal Question in Real Estate Law in California

Re: short sale

I'm not clear from your post what you are asking. Can a creditor place a lien on your brother's home if your name is on title? Yes, they can. By being on title, you have an ownership interest in the property, and that interest may be attachable by creditors. If you are negotiating a short sale, there shouldn't be a lien, unless the lender is seeking a promissory note from you for the amount they will be shorted, in which case yes, they will probably demand that a lien be placed against any and all property you own to secure the debt. They may not even approve your short sale if you own other property, as they generally look to all of your assets and income to make a determination if you have sufficient assets to pay the short sale amount without the bank having to take a loss. Essentially, they take the position that you should have to liquidate assets to pay the short-sale difference before they should have to take a loss.

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