Quit claim deed, First position lien holder

[Ron Ahearn]

Being new at lending, I come across an interesting Opp.

Client according to county records buys and owns a home worth 90,000, paid 35000 and has a 25000.00 homestead exemption, making taxes very cheap. He has no mortgage pending as of today. I have the copy of the deed from 2012 provided by a title company. 

He is however late on his taxes to the tune of less than 500.00 and his HOA payments for which they have not yet foreclosed. Which is why I am involved.

My question is, how much title work would you do to be sure that a first position promissory note get's recorded? client has offered to provide for my safe keeping an executed Quit Claim Deed as added security. ( not worth the paper if I am not first position I think?)

Anyone have advice and an education for me here?

Quit claim deeds can be given ton S-corps?

Ok and for those who are curious about the loan, he has agreed to a 15,000.00 loan at 11% for year 1 and 12% for year two. at which point the loan must be paid. we want him to pay off as we aren't in the business to evict.