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Quit Claim Deed the BK

Posted on: 23rd Jul, 2009 04:47 pm
scenario:
common law wife is second on mortgage, she does a quit claim deed and moves out. after some time, two to three months, common law husband who is first on the mortgage, files bk.
my question is this:
can the mortgage company persue common law wife for foreclosure or defiency ? this scenario is in alabama. thanks in advance for taking the time to read and give an answer.
Hi dmcgowan!

Welcome to forums!

A quitclaim deed will remove the common law wife from the property but not from the mortgage. She will be released from the mortgage only if the husband refinances the property. I don't think the husband has refinanced the property.

You have mentioned that the husband has filed bankruptcy. If his bankruptcy is accepted by the court, the lender cannot foreclose the property neither sue him for deficiency.

Feel free to ask if you've further queries.

Sussane
Posted on: 23rd Jul, 2009 08:06 pm
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