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Deed of trust, quit claim, divorce, and repossession scenario

Tacoma, WA |

Hopefully someone can end this family quarrel. We have a family member that married, quit claim deed the house to her husband. They both signed equity loans (deed of trust) a yr later. Months later, did another, paid the first one off. A year later got a third, (a lot more $$$), paid the second one off. The first two loans did file a Full Conveyence with the county. Then a yr later, they start defaulting. The house ends up going into foreclosure and then repo and auctioned off just a few months ago. The family member divorces the ex while it is in repo stage. She is adamant that this will not show up on her credit. Wouldnt the deed of trust, 2nd lien, hold her liable for something?

Attorney Answers 1


  1. If the first two loans secured by deeds of trust were paid off, neither party should have any liability for them and their credit should not have been negatively impacted. However, both parties will have their credit impacted by the third loan that went into default and foreclosure.

    And she may be adamant, but there is nothing that the family member can do about that.