Posted on: 04th Jun, 2007 07:24 am
i am considering taking a small loans in order to complete renovations to my house. the person lending the money wants me to sign a promissory note secured by a quit claim deed. does the promissory note limit the lenders interest in the property to the note only or am i signing all my rights away. :?:
Welcome Trio.
It's not that you are completely signing your rights away – it's just that your property will be kept as security for the loan and once you pay back the loan fully, you can get back the title to the property from the lender.
The quitclaim deed ensures your ownership rights on the property and if it secures the note, it means that it is your property which actually secures the note. And, I think the lender is quite justified if he has asked for some security - that's the way it is done.
Thanks.
It's not that you are completely signing your rights away – it's just that your property will be kept as security for the loan and once you pay back the loan fully, you can get back the title to the property from the lender.
The quitclaim deed ensures your ownership rights on the property and if it secures the note, it means that it is your property which actually secures the note. And, I think the lender is quite justified if he has asked for some security - that's the way it is done.
Thanks.