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My name is on the mortgage but not on the deed will a quit claim deed release me from the mortgage or foreclosure?
Wiki User
∙ 9y ago
No. Only the bank can release you from the mortgage. However, once you have guaranteed payment of a loan the bank won't let you off the hook unless the mortgage is paid or renegotiated. Generally, you are not free to transfer your property if it is subject to a mortgage.
Most mortgage documents have a 'due on transfer' clause that the mortgagor agreed to at the time of the signing of the mortgage. The bank must be notified of any transfer in interest or the mortgagor will be in breach of the agreement and the bank will demand payment in full. A quitclaim deed will trigger the due on transfer clause. If the property is transferred, the mortgagor is still responsible for paying the mortgage and the property is subject to the mortgage. If the mortgage isn't paid the lender will take possession of the property by foreclosure and the foreclosure will be reported on the mortgagor's credit record.
If a new owner has agreed to take possession of the real estate subject to the mortgage the seller must notify the bank of the transfer of interest. The bank may require that the mortgage be paid in full and refinanced by the new owner. On the other hand the bank may agree to allow the new owner to assume the mortgage. In that case, the original mortgagor will be free of the mortgage obligation and no longer responsible for repayment.
Wiki User
∙ 15y ago
Wiki User
∙ 9y agoIf you are not on the deed for the property and yet you signed the mortgage then it is likely that you also signed the note. In that case you obligated yourself to pay a mortgage for property you don't own. In that case the bank will not release you from the mortgage. You will remain responsible for the mortgage until it is paid off. if it goes into foreclosure it will affect your credit record. A quitclaim deed would have no effect on the situation.
If you did not sign the note then the foreclosure will simply go forward and you will not be involved.
Wiki User
∙ 15y agoIf your wife signed a mortgage with the property in both your names, her quitclaim deed to you will not remove her from being responsible for the morgage. Discss the matter with the bank.
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What happens if a piece of property you purchased by quit claim deed has a mortgage against it?
You must pay the mortgage or the lender will take possession of the property by foreclosure.
Can a quitclaim deed stop foreclosure?
No. The deed would only complicate the foreclosure process and cause an increase in legal costs. The mortgage takes priority over the deed since it was granted first. The grantee in the quitclaim deed would take the property subject to the mortgage. The foreclosure would still be filed against the mortgagor.
In simple terms what does it mean to receive a deed in lieu of foreclosure?
A deed in lieu of foreclosure refers to the process of handing over a property deed to the mortgage financier and no longer having to pay the mortgage. The property now belongs to the company who financed the mortgage.
Can you quick claim deed if house is in foreclosure?
You could file a quit claim deed. It will not remove your obligations under the mortgage and since the quit claim means they get the same rights you have, it doesn't to any good, except if there is any equity in the property after the sale, they will get it, not you.
I am divorced i have a quit claim deed on my ex's house she is going into foreclosure can the bank come after me?
If you didn't sign the mortgage then the bank can't come after you for payment in the case of a default. However, they can foreclose on the mortgage and take possession of the property notwithstanding the quitclaim deed to you.
Can you claim mortgage interest with quit claim deed if you are not on the mortgage?
You must be making the payments to claim the interest. However, if you are not on the mortgage there could be an issue.
If a home is rented and goes into default who will be held responsible for the tenants the owner on deed but not mortgage or the other owner on deed and mortgage or mortgage company that forecloses?
First, default just means not paying. The mortgage company has nothing to do with the tenants until there is a foreclosure sale. The two owners on the deed are the landlords. After a foreclosure sale, the bank must give at least 90 days notice to tenants.
What happens if your spouse dies you're not on the mortgage but have the deed in your name?
Generally that means the mortgage was given to the bank before your name went on the deed. In that case you need to pay the mortgage or the bank will take the property by foreclosure.
How can you deed your home back to the mortgage company?
If you mean because you're in default and want to avoid foreclosure, it's called a "deed in lieu of foreclosure" and it's usually part of an overall agreement that hopefully also extinguishes the mortgage debt. Typically the mortgage company is not required to accept it. They drive the bus.....
Is there such a thing as a voluntary surrender of mortgaged property without foreclosure?
Yes. In Massachusetts and other states there is a procedure whereby the mortgagor gives the bank a deed in lieu of foreclosure. You should discuss a "deed in lieu of foreclosure" with the mortgage department of your lender.
Do you have to pay for a home if you are on the deed?
If your name was added to property after the property was mortgaged then you are not legally responsible for paying the mortgage and a foreclosure of the mortgage will not affect your credit. However, if the mortgage isn't paid the lender will take possession of the property by a foreclosure process.
What to do if your name is the thrid name on a time share deed that was foreclosed on?
All three owners are equally responsible for paying the mortgage and the foreclosure will affect all owners equally. You can avoid foreclosure by paying the mortgage.
