Posted on: 08th Feb, 2010 02:22 pm
My husband and I bought a house about 3 1/2 tears ago. At the time, he had bad credit, so the loan is in my name only. We live in California, and the mortgage company also had him quit claim the deed to me. So the title to the house is in my name as my sole and separate property. We recently had a baby who was diagnosed with a chronic illness, so I can no longer work as much. We can't afford the payments on this house and are going to foreclose. I was wondering if my husband would still be able to purchase a less expensive house as his sole and separate property, or if my foreclosure would affect him. We would only use his income ( I don't have much anymore anyway) and his credit, which is cleaned up now.
Hi Guest,
Your husband is neither on the loan nor on the deed to the property, right? If it is so, then he will not be held responsible if you default on the mortgage. Your name is on the mortgage and you are the one who is liable to make the mortgage payments. If the property is foreclosed, it will not affect your husband's credit and he should be able to qualify for a new home loan, provided he has good credit and income.
Your husband is neither on the loan nor on the deed to the property, right? If it is so, then he will not be held responsible if you default on the mortgage. Your name is on the mortgage and you are the one who is liable to make the mortgage payments. If the property is foreclosed, it will not affect your husband's credit and he should be able to qualify for a new home loan, provided he has good credit and income.
thank you! i was worried because i know california is a community property state, but i guess we are fortunate that the bank made him sign the quit claim deed at closing !