My husband is only on the loan. If it is foreclosed, can the company come after me for the remainder?

Question

I live in the state of California, if the company forecloses the house, can they come after me for the remainder of the loan? Same with a short sale?

Answer 1

Yes and no, and I'll tell you why.

California is a state where when a couple is married, both assets AND debts that are accumulated jointly as part of a marriage are marital assets/liabilities, during that marriage.

So if your name is on title, it can be foreclosed on, but ONLY your husband can be legally sued (because you didn't sign a contract with the bank), however, if you divorce, and you have a deficiency judgment ie. remainder....your husband can petition the court for you to pay for half of it.

But the bank can't.

You see the difference?

Answer 2

They can not if he owned the property before you were married.  If purchased after you were married, then it is part of the community property.  And, they will go after you.

Answer 3

yes