My ex-wife was the primary borrower on a home loan with me as co-borrower. After our divorce was finalized she filed for bankruptcy and the loan was discharged. However, I remained in the home and continue to pay the mortgage, property tax, insurance, etc. which the lender not only allowed but encouraged. The ex-wife signed a quit claim deed recently and the deed to the property is now in my name only. Provided there is equity in the home when it's sold, does any profit go to me, the deed holder? If not, what benefit is there, if any, to hold the deed to the property?
The bank is only entitled to the balance of the outstanding loan, even if its discharged in bankruptcy. The balance would go to the property deed holder - you.
I would not accept a quit claim deed for your wife. Why didn't you get a General Warranty Deed? This could be an issue, should you sell the home, for the new buyers to get title insurance. Title Insurance company's hate Quit Claim Deeds.
As far as ay proceeds, they will go to the owner. But your ex-wife will have most likely have to sign the closing documents since her name is on the mortgage. Title companys will typically do this to cover their butts.