Quitclaim Deed Validity in Indiana

[Darren Finney]

Hello BP! I'm researching some pre-foreclosure properties in central Indiana and found something odd regarding a Quitclaim. Namely, the person who is being foreclosed on gave up ownership of the house several years ago via quitclaim to another person that does not appear to be a family member. I'm assuming this triggered the due on sale clause for the bank, even though that took years to actually occur. Regardless, the bank is foreclosing on person A but person B believes they are now the owner of the house regardless of person A's foreclosure. I'm assuming that person A had no legal authority to "sell" to person B without paying off the mortgage so in my mind that should make the Deed for the Quitclaim null and void. My questions are: 1. Is the Quitclaim Deed legitimate since person A still has a mortgage on the property? 2. What happens to person B if I am able to buy the house from person A? Do they have any legal claim to the house? 3. Will a Quiet Title suit clear this sort of thing on the chain of title? Thanks in advance!