foreclosure, i am not in the loan and did quit claim, Do I face any legal recourse? Can I buy another home.?

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I live in CA, will the bank go after me of my wife’s unpaid mortgage, I did a quit claim in our house, I am not in the mortgage loan, Will I face any legal recourse for putting quit claim? Can I buy another house, this time more affordable. Which way should we go, foreclosure or short sale? Pls give a sound advice….

4 Comments
  1. Reply
    RayN-is-back
    April 29, 2011 at 11:58 pm

    Are you sure you not responsible for the mortgage just because you did a quit claim doesn’t mean the mortgage co released you from the loan Did you signed the loan docs ? if so you are still responsible Don’t hide from the bank talk with them They don’t want your house they want your money

  2. Reply
    Mary B
    April 30, 2011 at 12:30 am

    If you are ABSOLUTELY sure that you were just on the title of the house, and the loan was in your wife’s name alone, then no, they cannot come after you, if your wife forecloses or short-sales.

    However, my concern is that you may have had a divorce decree that stated that your wife was responsbile for the mortgage, and that may have been the reason you quit-claimed yourself off the title.

    Keep in mind that a divorce decree means NOTHING to the bank…b/c the bank wasn’t present at the hearing and didn’t get a stay.

    If you were ever on that mortgage at all, divorce decree or not, you are still responsible, as far as the bank is concerned, for that payment, and they can legally report a foreclosure or short sale to your credit.

    The divorce decree, however, gives you legal grounds to sue your ex wife for any monies or penalties that are levied against you b/c of the process.

  3. Reply
    newjerseyguy
    April 30, 2011 at 1:16 am

    A quit claim deed means you release any claim to the property title, but it does not release you from any mortgage note you signed. If you are a coborrower or cosigner on the note, you are liable until that note is paid off.

  4. Reply
    Landlord
    April 30, 2011 at 1:50 am

    CA is a community property state. Your wifes debts and credit rating are yours too.

    If your bank will allow a short sale of this home you can go for it. It will be better credit wise then a foreclosure. Financially it is the same.

    You will not be buying anything else. You have already proven that you are perfectly willing to attempt to rip off the bank, they will not be trusting you anytime soon with another loan.

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