Legal Question in Real Estate Law in Illinois

First, a vocabulary lesson: it's QUIT claim because you are quitting any claim you may have on the property.

As long as the bank gets their money they don't care. You would have to continue paying the mortgage until it is paid off. This scheme probably not work. You could sell the property and use her forgiveness as consideration. Again, the problem is the outstanding amount of the mortgage. If you are paid off or almost paid off, go for it.

You would go through a regular closing and you would show the title company her release of the debt as payment. Closing costs and the mortgage would have to be paid in hard cash.

I don't see how it would work.

Your mortgage likely contains a due on sale clause, which means you cannot convey your interest in the property to someone else. If you do, and the lender finds out about it (which is simple to do via county records), the lender can call the entire loan balance due immediately. Also, if you quit claim your interest to your friend, your friend owns the property, and you still owe the money to the bank.

I agree with Tom. You are taking a big chance with the Due on Sale Clause.