Foreclosure and Community Property

[Craigh95630]

What is the name of your state (only U.S. law)? California

My wife has home she purchased before we were married solely in her name which we are going to try to negotiate for short sale or deed in lieu of foreclosure. If there is still a balance due to the lender afterwards, can they come after the cash savings I have in my account or put a lien on my accounts since we are in a community property state?

 

[FlyingRon]

Unless you agree to retain some resonsibility for the deficiency the bank usually agrees to release you from further liability for that loan in a deed-in-loo or short sale. Even in foreclosure, if you're talking about the acquisition loan, it is non-recourse in Cali which means they can't come after you other than taking the house.

 

[Craigh95630]

Thank You. I have not agreed to retain any responsibility deficiency. As mentioned, the property is solely in my wife's name. My problem is in the cash savings I have worked extremely hard to save for the past 10 years and if the house goes to foreclosure, I do not want to see my savings for the future be siphoned off simply because we are married and under a community property status.