Can lender go after my mom’s house if my name is on the deed, and my primary residence is foreclosed on??

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Can lender go after my mom’s house if my name is on the deed, and my primary residence is foreclosed on??

I have 2 loans on my primary residence. Both are purchase money loans with power of sale clause. Both loans have never been refinanced or modified. I added my name to my mom’s house deed (beneficiary purpose; house all paid for; value of about $320,000). If my home is foreclosed on, would the lender most likely go after my mom’s house?

Asked on August 26, 2011 California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

California has anti-deficiency statuts concerning purchase money loans where if the purchase money loans are foreclosed upon and there is a deficiency between the amount owed on the loan and what the property was sold for, the lender cannot go after the former property owner for any balance owed. Likewise, even if the loans are not purchase money and the lender forecloses upon the property by way of a non-judicial foreclosure resulting in a deficiency judgment, there cannot under California law be a deficiency owed.

If both loans on your property are purchase money, they are probably an 80/20 split of the total loan for the property common five or so years ago in California.

If your home is foreclosed upon, from what you have written I do not see a legal basis for the lender to go after your interest in the home occupied by your mother.

Good question.

 


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