Hypothetical Situation ... your thoughts?

[last2cents]

I probably should have said "potential" rather than "hypothetical" ...but I'm interested in feedback on the following scenario:

Fiancee has a rental property (sole owner - I have nothing to do with it)....tenants bailed earlier this year, breaking the lease. Without the rental income there is no way he can hack the payments on the house (his only income is disability aside from the previous rental payments). At the time he got the mortgages (1st & 2nd) he had other income and was living there. Once we got engaged, it made more economic sense for us to live together in my house and rent the other property.

What I'm curious about.......if the house were to go to foreclosure AFTER our wedding, and the bank tried to sue him for a deficiency balance at that time - am I going to be named in the suit or otherwise be responsible? We are in a community property state.

My own thinking is that it wouldn't touch me since I'm not on the mortgages and not on title to the property - but I figured I'd throw it out here for you guys to chew on.

Thoughts?

[justbroke]

What I'm curious about.......if the house were to go to foreclosure AFTER our wedding, and the bank tried to sue him for a deficiency balance at that time - am I going to be named in the suit or otherwise be responsible? We are in a community property state.

You would be named, only because you may" have equitable interest int he title. Trust me... they did this in Florida -- to me -- and I married AFTER my bankruptcy started (and well after foreclosure started).

Florida is not a community property State. However, spouses need to be notified just in case. A creditor does not want the foreclosure sale to be rescinded because they didn't name all parties in interest.

Don't be surprised if the foreclosure lawsuit names "Unknown Spouse of John Doe".