Legal Question in Real Estate Law in California

Short sell to your spouse.

My wife bought a house prior to us being married. I am not on the loan, deed, etc. The house is now worth approximately $150,000.00 less and is up for short sell. Would I be allowed to purchase the home on a short sell with no consequences to my wife?


Asked on 7/07/08, 4:45 pm

3 Answers from Attorneys
Robert Mccoy Law Office Of Robert McCoy

Re: Short sell to your spouse.

I cannot speak for your lender, but I doubt it. If the lender allows a short sale, it will be because it has been convinced that neither you nor your wife can afford to keep the house any more. It sounds to me that what you are really seeking from the lender is a modification. I would recommend being up front with the lender instead of hiding your true intentions. Lenders are unpredicatable when it comes to short sales or modifications. You do not want to say or do anything that will give it a reason to back out.

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Answered on 7/07/08, 5:06 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Short sell to your spouse.

I think full disclosure is the key here. I'm not sure I agree with all of Mr. Mccoy's reasoning, since you are not probably not liable for any contribution to your wife's pre-marriage mortgage debt (Family Code section 911), but for sure the lender has the option, not the duty, to offer to participate in a short sale, or not, and thus has a right to make its decision based upon full disclosure.

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Answered on 7/07/08, 8:48 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Short sell to your spouse.

Yes. If the bank agrees.

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Answered on 7/07/08, 10:44 pm


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