Posted on: 26th Jan, 2009 10:52 pm
I'm currently in the process of applying for a loan. Everything is pretty much good to go. I have already been pre-approved, I want a lender to approve my loan. But here is my situation...
My husband already has a house from before we weremarried. He can no longer afford the house so he may shortsale and/or foreclose in the next coming months. The plan is for me to purchase a condo on my own and have him move in. What would be the best option for me in order to have this loan approved since we are married and California is a community state? I want to be the only one on the loan since he'll be 'walking away' from his current loan. But, I'm not sure if a lender will approve my loan if I have him on the title but not on the loan? And if he is on the title, can his 'walking away' affect my newly purchased house?
If I can have him on the title and not the loan, that would be the best option since I've heard that a interspousal grand deed has tax implications.
My husband already has a house from before we weremarried. He can no longer afford the house so he may shortsale and/or foreclose in the next coming months. The plan is for me to purchase a condo on my own and have him move in. What would be the best option for me in order to have this loan approved since we are married and California is a community state? I want to be the only one on the loan since he'll be 'walking away' from his current loan. But, I'm not sure if a lender will approve my loan if I have him on the title but not on the loan? And if he is on the title, can his 'walking away' affect my newly purchased house?
If I can have him on the title and not the loan, that would be the best option since I've heard that a interspousal grand deed has tax implications.
Hi Guest,
As far as I know, in California, the lender will not be able to sue the borrower for the deficient amount resulting from the foreclosure sale. So if your husband, walks away from the property, then the lender will definitely foreclose the property but he won't be able to ask for the deficient amount. So I don't think, it will be any problem if you add him to your new property. But, to be on the safer side, I would suggest you to consult a mortgage attorney and take his opinion regarding this issue.
Thanks.
As far as I know, in California, the lender will not be able to sue the borrower for the deficient amount resulting from the foreclosure sale. So if your husband, walks away from the property, then the lender will definitely foreclose the property but he won't be able to ask for the deficient amount. So I don't think, it will be any problem if you add him to your new property. But, to be on the safer side, I would suggest you to consult a mortgage attorney and take his opinion regarding this issue.
Thanks.