Simpsonville, SC asked in Consumer Law, Estate Planning, Land Use & Zoning and Real Estate Law for South Carolina

Q: can you QuitClaim Deed property to Trust? & if the lender wants pay-in-full but you have nothing else of value left...

what happens when you do a QuitClaim Deed of property over to a Private Common Law Irrevocable Ecclesiastic Trust? If the person’s name is on the recorded Deed as owner… meaning legal owner of the property, having a legal interest in the property referring to the right to possess or use the property.

So if the person grants/transfers all claims of legal interest of ownership over to the trust, thus removing the person's name from the title of the deed. Leaving the person only with the mortgage responsibilities.

If the person has no job, no income, no other assets, no money in the bank and owns nothing...

What happens when the lender comes after you for payment in full but you (the person) have/has nothing?

Is the house/property safe in the private Trust from foreclosure and or seizure?

1 Lawyer Answer
Nina Whitehurst
Nina Whitehurst
PREMIUM
Answered
  • Estate Planning Lawyer
  • Crossville, TN

A: Transferring property to a trust does not magically remove security interests. If the loan goes into default due to lack of payment, the lender may foreclose its lien.

Tim Akpinar agrees with this answer

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