Posted on: 22nd Oct, 2009 06:49 pm
My question is regarding foreclosure laws/quitclaim deeds in the state of Georgia. My son and I bought a house in 1999. I lived there until three years ago and have made the mortgage payments on it until two years ago. I remarried, and my son moved into the house. He has lost his job, and the house will be going into foreclosure in November 2009. While I provided the down payment and made the payments, the note is in his name only. He signed a quitclaim about nine years ago. My question is this: When the house goes into foreclosure, will I be financially liable in any way for the mortgage/deficeit? I pasted a sentence from your article, but just wanted to be sure this applies in the state of Geogia. Thanks so much for your time.
"Thus, when you transfer property rights, a quitclaim deed serves your purpose. But you cannot transfer mortgage debt or any financial obligation through the deed."
"Thus, when you transfer property rights, a quitclaim deed serves your purpose. But you cannot transfer mortgage debt or any financial obligation through the deed."
Welcome tso,
A quitclaim deed does not helps a person to transfer the mortgage to someone else. If your name is on the mortgage docs, then you would be liable for the mortgage. The lender may sue you for the deficient amount resulting from the sale. However, if your son is the borrower of the loan, then it's his credit that would be affected and the lender would consider him responsible for the balance amount.
A quitclaim deed does not helps a person to transfer the mortgage to someone else. If your name is on the mortgage docs, then you would be liable for the mortgage. The lender may sue you for the deficient amount resulting from the sale. However, if your son is the borrower of the loan, then it's his credit that would be affected and the lender would consider him responsible for the balance amount.