Short Sale confusion

[Confused33]

I bought a house in 5/2008 in my name alone and in Texas. Married my wife in 6/2008.

We are closing on our short sale on 12/23 and the title company is saying that my wife has to sign due to community property laws.

Wife is freaking out because she doesn't want the short sale to show on her record or credit which I'm saying no how no way.

What do you say?

[HHM]

The answer will be specific to Texas community law rules, so I don't have an answer.

I don't know how TX interprets its transmutation of separate property to community property.

However, I don't think it is a big deal, it SHOULDN'T show up anyway in relation to her because she is not on the mortgage. I think all that is happening is the title company wants her to relinquish any ownership claim she "might" have. That is a different issue than being in default of a mortgage. She should be okay if she signs the release because she is not on mortgage.

[Confused33]

Just want to say that we signed a waiver of interest and I signed on the house on 12/23. Boy am I glad that is over.

[goodyphilips]

Nice to know that your woes are over, there are few people who are struggling with this.