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Assuming that the husband and his first wife held title
to the property as husband and wife, the title would be held as "Tenants by the Entirety". Once they were divorced, title was held by them as "Tenants in Common" which has no right of survivorship. Therefore, when the first wife passed away without a will, title to her one-half of the property went to her estate.
The loan which the husband got from the lender is not affected in any way and he still must pay back the loan in full to the lender. The lender's collateral is only one-half of the property since that is only what the husband owned. He could not give the entire property as collateral because he did not own 100% interest in the property.
Someone signing a Quit Claim deed does not give any warranties as to title to the property. The person signing a Quit Claim deed transfers only his/her interest, if any
in the property. So, if the person signing the deed has only a 50% interest in the property, that is all that they can transfer to a buyer. If the person has no interest at all in the property, then they cannot transfer any interest in the property.