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My husband and I purchased investment property 10 years ago with a mortgage. I use the same tax person that was used when we purchased the property.
My husband passed in 2010 and this is where the problem starts. I was 5 months default and could not afford to catch up on the mortgage, I decided to try to sale. I was not interested in making money, just wanted the burden lifted. John, the Realtor was interested in purchasing the house by doing a Special Warranty Deed (filed 2013) and I agreed. He explained to me that he would catch up the arrears and make the mortgage payments but the house would still be in my name and he would claim the house on his taxes since he made the payments. John said he had done this before without any problem. Does this sound like illegal transaction?