Posted on: 10th Jan, 2010 12:46 pm
Hello, what happens if a quitclaim is in effect and the home is sold for less than the payoff or the home goes in foreclosure. who is responsible for the outstanding debt? how does the bank handle that?
Hi jdallegrina,
The person whose name is on the mortgage will be responsible for the home loan. The lender will sue that person for the deficient balance. If that person is unable to pay the mortgage dues, then the lender may place liens on that person's other properties.
The person whose name is on the mortgage will be responsible for the home loan. The lender will sue that person for the deficient balance. If that person is unable to pay the mortgage dues, then the lender may place liens on that person's other properties.