A Seller was about to lose their home to a pending foreclosure. They decided to do a Quit Claim Deed to their business (which now owns the property). The remainder of the mortgage is now a $65,000 lien on the property.
The seller decides they want to Quit Claim deed the property to a new owner. Can the new owner negotiate with the bank to have that lien amount reduced? Is that possible?
The property is uninhabitable.
It will never happen like that, unless by chance that loan had already been sold for a huge discount....unlikely. The only shot of doing something similar would be to do a straight up short sale.
@Brian Watkins Be careful when choosing to use a Quit Claim Deed:
A person receiving a purported real estate interest via a quitclaim deed may receive no legal right to the property whatsoever. If the person seeking to transfer real estate with a quitclaim deed has no legal interest, nothing legally is conveyed. In the absence of title insurance--which is not available for a quitclaim deed--the person receiving the quitclaim deed has no legal recourse because the deed itself states that only the interest of the grantor, if any interest exists, is conveyed.
Whether title insurance terminates by transferring real property depends on the type of policy, and how “insured” is defined in the policy. You take a risk which could result in cancellation of your title insurance and complete loss of your real property without compensation in the event that a title issue regarding your real property arises.
Contact your title insurance company to determine coverage and if your policy does cover transfers , and when or how.