Posted on: 06th Oct, 2008 02:55 pm
property was quitclaimed as gift,property being rented out by grantee who is paying loan for grantor...my neighbor, after divorce and out of desperation to avoid foreclosure of her home, quitclaimed it as a bona fide gift to a woman (who works for a mortgage broker) who has been renting out the home and collecting the rent money. the property loan is still in my neighbor's name and the "owner" is supposed to be paying on the mortgage loan. the mortgage company is not aware of this quitclaim deed as far as my neighbor knows. the renters left because the "owner" is not making necessary repairs. now it's possible that "owner" is not paying the monthly mortgage payments and my be pocketing the rent money, and property taxes will be due soon. does my neighbor have any recourse? i suggested she contact her bank asap and deed the house back to the bank and be done with this mess. is this quitclaim deed valid? what can she do? thanks for your help.
Never, ever, transfer property by deed without transferring liability of the mortgage. Your neighbor does not own the house, but owes the mortgage. She has no recourse that I am aware of.