Are You Still Liable for a Mortgage If You Quit Claim the Property to a Third Party?

 

 

Video Summary

 

Are you still liable for a mortgage if you quit claim the property to a third party?  The answer to the question is yes; you are still liable under the promissory note that the mortgage secures.  The mortgage is a lien against the property, which of course the buyer is taking the property subject to so they can enforce the mortgage or foreclose if the payments are not made. 

You signed a promissory note and so if you are the maker under the note you have liability under the promissory note.  The time that that would be a problem would be if the property was not worth as much as the amount that is owed under the note and then the mortgage holder could if they would sue you for what they call “a deficiency judgment.”  But you are not relieved from the liability under the promissory note if you simply convey away the property by quit claim deed, sale, or any other type of conveyance. 

So if you would like to be released and you want to convey the property away, well give me a call and I’ll tell you what will be necessary to do that.

 

My phone number is (727) 847-2288.