Is a new home purchase subject to delinquency judgment during an old foreclosure?
When my wife and I got married 9 months ago we each owned separate property. The home I own is in the process of foreclosure. My wife is currently in escrow to purchase a new home. However, since we live in California, a community property state, both of our names will be listed on the title of the new home (even though the loan is only in her name). If my home (that I purchased prior to marriage) goes into foreclosure, can the bank come after the house my wife is purchasing?
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July 13th, 2010 at 7:23 am
In California, generally speaking a foreclosure is not subject to a delinquency judgment.
Is the foreclosure a Trustee Sale (which there isn’t a deficiency judgment) or a judicial foreclosure (where there can be a deficiency judgment)?
In California about 98% of all foreclosures are done by a Trustee Sale.
No matter what, a creditor can’t go after any of her own assets because of what you purchased prior to your marriage, however if you and you future wife (married or not) commingle your funds and assets a "judgment creditor" can go after those assets.