Will a quit claim deed release me from the mortgage note? 12 Answers as of December 09, 2014

My ex-husband is claiming bankruptcy to stop our home from foreclosure. The bank is requiring that I sign a quit claim deed before they will grant him a loan modification. I do not want to sign a QCD if it doesn't. He was ordered to sell the property but never did.

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Stephens Gourley & Bywater | David A. Stephens
A quitclaim deed, in and of itself, will not release you from the mortgage. You need to be certain there is an agreement releasing you in exchange for the quitclaim.
Answer Applies to: Nevada
Replied: 12/9/2014
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Signing a quit claim deed does not release you from liability. You would need an independent document signed by the mortgage company releasing you from liability.
Answer Applies to: Colorado
Replied: 12/9/2014
The Orantes Law Firm
The Orantes Law Firm | Giovanni Orantes
No. Simply executing and filing a quitclaim deed will not release you of liability if you are liable. However, if a bank is requiring such a quitclaim deed and you don't provide it, the bank will foreclose and your liability will go from being theoretical to real as the bank will either collect actively from you or forgive the debt, which will cause you to incur debt forgiveness tax debt (unless you can find an exception). Note, importantly, that you may not be liable for any deficiency on payment of the mortgage against your home if that property was your principal residence and the loan or loans were the loans used to purchase the home originally (that is, they were the original loans to buy your principal residence and have not been refinanced and they were not a true credit line).
Answer Applies to: California
Replied: 12/9/2014
A Fresh Start
A Fresh Start | Dorothy G Bunce
Unless you have a written contract saying that by signing a quit claim deed you are released from liability on the mortgage, you have nothing. With real estate, a verbal agreement isn't worth the paper it is written on!
Answer Applies to: Nevada
Replied: 12/8/2014
Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
Signing the Quit-Claim deed by itself does not release you from the obligation to pay the mortgage. But if your husband's loan modification will permit him to be the sole signer, and if the old note is cancelled, then you would be free from the obligation. But don't count on it. Why should the bank let you off the hook when they already have you on it? And when your husband is filing a bankruptcy petition. You'll have to get more involved in the process and see what you can do in talks with the bank to get released from the debt, if possible. Good Luck.
Answer Applies to: Wisconsin
Replied: 12/8/2014
    Barnes Law Firm, LLC | Aunna Peoples
    You really need to discuss this with an attorney. You want the bank to release you from the note, not just take your name off the property. Often the former spouse will find that their name was removed from the property but are still obligated for the debt. Signing a QCD does not in and of itself release you from the underlying debt.
    Answer Applies to: Missouri
    Replied: 12/8/2014
    Law Office of Melissa Botting | Melissa Botting
    A quit claim deed only surrenders any interest you have in the property. The mortgage company wants that to ensure that you will bring an action under community property spousal interest or any other interest. It does not remove you from a note. However, a modification is a new note and you may not be on the new note. I would insist on a document signed by an officer of the bank releasing you or a copy of a new note that does not include you before turning over a quit claim deed.
    Answer Applies to: Texas
    Replied: 12/8/2014
    Novakov & Associates, PLLC
    Novakov & Associates, PLLC | LINDA S. NOVAKOV
    No, a quit-claim Deed only transfers any interest you have in the real property to the recipient of the Deed. If you were a signer on the original Note, then you remain liable for the debt. If he is attempting a modification, then you should request that the lender provide you a release from personal liability. This document from the lender will be the "release" you are looking for. If you never signed the original mortgage note, then you have no obligation to pay.
    Answer Applies to: Kentucky
    Replied: 12/8/2014
    Scott Goldstein | Scott Goldstein
    No, unless the lender agrees to release you from liability.
    Answer Applies to: New Jersey
    Replied: 12/8/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    No, you would have to get the bank to release you from the note as well or file your own bankruptcy to be released from the note.
    Answer Applies to: New York
    Replied: 12/8/2014
    Mark S Cherry, Attorney at Law, PC
    Mark S Cherry, Attorney at Law, PC | Mark Cherry
    The quitclaim deed will remove your ownership but will NOT release you from the Mortgage Note. Your divorce documents should have an indemnification and hold harmless clause to protect you.
    Answer Applies to: New Jersey
    Replied: 12/8/2014
    Ronald K. Nims LLC | Ronald K. Nims
    If you're liable on the mortgage note, a quit claim deed won't release you from liability. If you're not liable on the note, the bank needs you to sign the quit claim deed to release your spousal rights in the property.
    Answer Applies to: Ohio
    Replied: 12/8/2014
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