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quit claim for debt settlement

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cmcdolphin Guest	Posted: Wed Sep 14, 2011 1:15 pm    Post subject: quit claim for debt settlement Like 0 Dislike 0 I borrowed money from a private party. I couldn't pay it back. We signed a quit claim deed to land that I owed to secure the debt. I have also been paying them interest on the money I borrowed, monthly. I have been doing that because I was hoping to get my home refinanced and pay them back. It isn't happening. Do I have to continue to pay the interest? What, if anything, do I have to do to let them have the land as settlement for the debt? Who is responsible for the property tax?
cmcdolphin Guest	Posted: Wed Sep 14, 2011 1:19 pm    Post subject: quit claim deed for debt settlement Like 0 Dislike 0 To clarify a typo: It is land that I OWN not OWE _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
adonis Joined: 22 Oct 2005 Posts: 10574 Location: ALASKA 1090.82 Dollars($)	Posted: Wed Sep 14, 2011 7:56 pm    Post subject: Like 0 Dislike 0 Welcome cmcdolphin, If you cannot pay back the debt, then the private party will be able to foreclose the property in order to recover the debt. However, if the property is in the name of the third party, then they will be responsible for paying the property taxes. _________________ Procrastination is the enemy of your financial success
sabrinatoss Community Expert Joined: 16 Jan 2011 Posts: 516 Location: Australia 82.74 Dollars($)	Posted: Wed Sep 14, 2011 8:23 pm    Post subject: Like 0 Dislike 0 The mortgagor is responsible for paying the mortgage. The mortgagor cannot quitclaim the property while the mortgage is outstanding. Mortgage documents have a due on transfer clause whereby the lender will call in the loan if there is a transfer of ownership. Ignoring that provision will get you and your purchaser in a lot of trouble. _________________ Home Loan, Mortgage Insurance Calculator, Mortgage Broker

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