Quit claimed property w/ mortgage - liability?

[burnero]

What is the name of your state (only U.S. law)?
TEXAS

Prior to mother's death, she "quit claimed" her property to her children. (Quit claim deed is so far unrecorded.)

Mother's estate was not probated due to insolvency.

The property had a mortgage on it, but the house is now worth less than the mortgage.

Mortgage company is foreclosing, sending notice to heirs.

Have the children incurred liability?

[justalayman]

Originally Posted by burnero

Have the children incurred liability?

Liability for the mortgage? No.


She had no rights to transfer the title without dealing with the mortgage as well. That does not remove the banks ability to foreclose, even if you had recorded the deed.

How did you expect the bank to be paid for the mortgage? Simply write it off?

[FlyingRon]

What makes you think you can't transfer the rights without taking care of the mortgage.