If the property is deeded to someone else via Quick Claim Deed, does it release the person, signing over the property, financial responsibility? In other words, is the new deed holder responsible for any remaining mortgage or liability pertainin to the property?
These are actually two different questions. But the answer to both is “NO”. I must assume that you already know the answer to the first question.
After all, if it were possible to simply QUITCLAIM a property away in order to release one of financial responsibility, then foreclosures would be rare events.
In fact, the only way to release oneself of one’s financial obligation (i.e. a mortgage secured by the property) is to pay off the mortgage, refinance (and obtain a new mortgage), or obtain the lender’s agreement to replace the responsible party with someone else (a rare event, as there is no point in the lender agreeing to do this).
In short, there is likely no reason why you would quitclaim the property away because you are still obligated to pay the mortgage. One has nothing to do with the other.
The answer to the second question is also “NO” and this is because between you and the bank (that loaned the money per the note that is secured by the house), the “new deed holder” is a stranger.
The “new deed holder” is no less obligated to pay the bank than the bank is entitled to pursue him/her. They are both strangers and neither owe each other anything (with the exception that if the bank forecloses, the “new deed holder” is entitled to receive notice of the foreclosure).
In short, do not quitclaim the property away without obtaining a release from the bank of your obligations under the note which is secured with a deed of trust. Only in a very rare situation can I imagine that the bank would agree to such a request.
Attention! We are not attorneys and we are not lawyers. We cannot represent customers, select legal forms, or give advice on rights or laws. The article provided is for information ONLY and is NOT a substitute for the advice of a lawyer.