can wife take all the risks of purchasing a house?

[ihot]

What is the name of your state (only U.S. law)? California.
can my wife take all the risks of purchasing a house?
We have lots of friends whose homes are underwater. I am hesitant to buy a home for fear of bankruptcy, but my wife claims that she can take the loan in her name, and if we go underwater, she can file bankruptcy and not affect me. Is that true?

 

[LdiJ]

What is the name of your state (only U.S. law)? California.
can my wife take all the risks of purchasing a house?
We have lots of friends whose homes are underwater. I am hesitant to buy a home for fear of bankruptcy, but my wife claims that she can take the loan in her name, and if we go underwater, she can file bankruptcy and not affect me. Is that true?

Since CA is a community property state, I am not sure that her theory is sound. However, now is absolutely the time to purchase a house if you are in the position to do so, because its unlikely that prices will ever again be as low as they are now. Everybody is under water for the first 3-5 years or so of a home loan, even when the market is good.

 

[justalayman]

Since CA is not a community property state, I am not sure that her theory is sound. However, now is absolutely the time to purchase a house if you are in the position to do so, because its unlikely that prices will ever again be as low as they are now. Everybody is under water for the first 3-5 years or so of a home loan, even when the market is good.

Is NOT a community property state?

Did you mean: it is a community property state? Your response following would seem to imply such.

but anyway, California is a community property state which also means, there are community debts. Unless the home can be purchased as a non-community asset, a bk by the poster can jeopardize the home.

 

[LdiJ]

Is NOT a community property state?

Did you mean: it is a community property state? Your response following would seem to imply such.

but anyway, California is a community property state which also means, there are community debts. Unless the home can be purchased as a non-community asset, a bk by the poster can jeopardize the home.

You are right, I meant IS a community property state....I will edit.

 

[ihot]

My financial experts say USA properties headed for another 10 to 20% drop

Thanks for your advice.
My financial experts all agreee USA properties headed for another 10 to 20% drop the next few years - much like Japan's 25 year collapse.
Right now foreclosures will start to ramp up again - as foreclosureGate has been settled.

I will forward your advice to my sneering spouse who believes her bk will not affect me.

 

[LdiJ]

Thanks for your advice.
My financial experts all agreee USA properties headed for another 10 to 20% drop the next few years - much like Japan's 25 year collapse.

Right now foreclosures will start to ramp up again - as foreclosureGate has been settled.

I will forward your advice to my sneering spouse who believes her bk will not affect me.

I am not at all sure that I "buy" the bolded.

 

[latigo]

What is the name of your state (only U.S. law)? California.
can my wife take all the risks of purchasing a house?
We have lots of friends whose homes are underwater. I am hesitant to buy a home for fear of bankruptcy, but my wife claims that she can take the loan in her name, and if we go underwater, she can file bankruptcy and not affect me. Is that true?

Fuhgeddaboudit!

Your better half is not going to find a lender willing to finance her purchase of real property in the state of California without securing your signature on the deed of trust and note. Not even if she purportedly is buying it as her sole and separate property.

And not likely in any other state, community property law or not.

 

[startedone]

Then rent ! House prices still may go down again ... greed v fear.

But is your wife a lawyer specializing in this? If not, go see one.