Real Estate Law
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No that is not correct. It is the owner of the property who receives any proceeds from the sale of that property. The owner is established by who is on the deed to the property. If you quitclaimed your interest over to her, she is the sole owner and would receive any proceeds of the sale once the mortgage and any other debts or liens had been paid off that were on the property.
The mortgage doesn't have anything to do with who receives the funds from a sale. It only establishes who is legally liable to pay the debt back to the bank.
Yes, being on the deed (title) determines who is the owner of a piece of property. It is the deed or title that says who owns it and how they own it (i.e. joint tenants, tenants in common, sole ownership, etc.). But a mortgage doesn't necessarily have anything to do with the deed/title. That is just the contract that says that a piece of property was put up as collateral for a loan by the owner, whoever that is, and that A and B have agreed to repay that money or the bank can foreclose on the property and sell it.
Being on the mortgage and being on the title/deed are two completely different things. You can be stuck on the mortgage and not have any ownership interest in the property at all and this is normally what happens when people divorce and they don't just sell any real estate that they purchased. One person ends up with sole ownership, as evidenced by one spouse quitclaim deeding their ownership over to the other spouse but they both are on the mortgage and responsible to pay it off.
So if you both quitclaimed property over to the other person, that person owns the property entirely on their own now. But you both are still legally obligated to pay the mortgages on both properties unless they are sold or refinanced in the sole owner's name.