Question about "Liability"

**bebe0315** · 03-24-2009, 09:15 AM

Good morning!

I am married but applying for a home loan on my own. My husband is the sole proprietor of his business so he has a lot of debt from his start up costs. I gave the loan company all of my information, but they said that since California is a common law state, they had to take his SSN and check his liability. They said they weren't going to check his credit or anything, just his liability. What does this mean? At first I thought maybe they were going to check his debt, but the more I thought about it, maybe they are checking for legal action and judgements against him? I am not sure, but it is driving me crazy waiting for my loan officer to call me back, and I feel like a dummy calling him back to ask him what that meant. Does anyone know exactly what "checking his liability" means?

Thanks so much!

**jnzy111** · 03-24-2009, 09:42 AM

Good question,

When I bought my primary residence, I was still married although separated (not legally). They asked for her ssn as well but nothing came about. They did have her fill out a form stating that she knew I was buying the house.

I would also love to hear what any loan agents may have to say about this...

Originally Posted by bebe0315

Good morning!

I am married but applying for a home loan on my own. My husband is the sole proprietor of his business so he has a lot of debt from his start up costs. I gave the loan company all of my information, but they said that since California is a common law state, they had to take his SSN and check his liability. They said they weren't going to check his credit or anything, just his liability. What does this mean? At first I thought maybe they were going to check his debt, but the more I thought about it, maybe they are checking for legal action and judgements against him? I am not sure, but it is driving me crazy waiting for my loan officer to call me back, and I feel like a dummy calling him back to ask him what that meant. Does anyone know exactly what "checking his liability" means?

Thanks so much!