Legal Question in Real Estate Law in New Mexico

Re: Effects of quit claim deed to existing real estate mortgage

If I understand your question, you are inquiring about the effect of an existing mortgage on a person who acquires a property by a quitclaim deed. When a person acquires a property this way, it means he takes the property as is--that is, with any existing "defects" in the title. The seller makes no warranties as to whether he has good title to pass, or as to any title defects. If a mortgage (also known as a deed of trust) has been recorded against a property in the land records of the county where it's located before the person receiving the quitclaim deed acquires it, the mortgage stays on the record and the new owner must deal with it. You can contact the lender and see if it is willing to transfer the mortgage to you. Some lenders will not allow this, which means that you'll have to pay off the entire mortgage. Others will allow the buyer to assume the mortgage if you prove creditworthy.