Not on loan or title - still accountable?

[neverends3]

California - My husband, Father-in-law, and Mother-in-law are all on a title to the house that my husband and I live in. My husband and father-in-law are on the mortgage loan papers and are 4 months past due. Can I or my bank account (in my name only) be responsible for any payments or accessed if there is a foreclosure?

 

[JETX]

Can I or my bank account (in my name only) be responsible for any payments or accessed if there is a foreclosure?

Yes. Welcome to the world of 'community property'.

 

[latigo]

This is for information purposes only.

You need to seek the advice of a California attorney competent with the state’s marital property laws. In particular, sections 910-916 of the California Family Code.

Whether or not your bank account would be protected from levy of execution/garnishment on a deficiency judgment following a foreclosure on the home, should such a judgment be issued, would depend on several factors.

1. When your husband signed the mortgage loan, before or after the marriage, and

2. Whether or not the money on deposit in the bank account in question represents your separate property and/or your earnings during the marriage, and;

3. The account has remained separate and apart from other community assets and has never been subject to withdrawals by your husband.

The fact that you are neither on the title or the mortgage note suggests that it was an existing debt at the time of the marriage. If so, the account would be protected subject to the conditions mentioned.

If the mortgage note was signed during the marriage, then it is a community debt and you and your husband are jointly and severally responsible and the bank credits, regardless of their character as either community or separate and irrespective of how they are held would not be protected from a creditor of the community.