Quit Claim Vs Warranty Deed
I live in a house that I used to own that went into foreclosure. The house was not purchased at foreclosure and the bank allowed me to stay in the house pending a sale. At least for 2 months. During that time my step father purchased the property in his name and agreed that he would turn the property back over to me in my name after I got myself together. Since then he has died and the property is now in his wife's name. Over the last 12 years I have made all the mortgage payments, all repairs and any expenses associated with the house. In other words the house is "mine" just in my step mom's name. The problem is that I cannot purchase the home back at this time because my credit is not up to par. I would like to get the house back in my name and have title to it and at least give my step mom something for her doing this for me. We have a wondeful relationship and I believe that she wants to do this with my best interest at hand. The curren loan is a VA loan, the balance on the house is around $117,000 with an appraised value of about $260,000. Can you advise me the best way to get the house deeded back to me and my wife with the least amount of money spent to do so? Is quit deed one of my options? Can someone help me? Thank you in advance. 
Do you know if your moms VA loan is assumable, some older VA loans are assumable..(look at a copy of her note)
If so..----You could purchase the house from your mother, she could give you a warranty deed , then assume her mortgage and give her a second mortgage for whatever amount you want. -- then after some time and you fix your credit you could refinance paying off both mortgages at which time your mother would get her money.
(also the VA loan will start reporting on your credit which might help improve it)
You don't need a RE agent or lender to do this, a title company or RE attorney could prepare everything for you and record all the documents so it's legit.
This is just one Idea-- other people may have a better one..
good luck
Yes a Quit claim deed is one of your options. If you did that you would essentially be doing a subject to purchase from your step mother. There is a Subject to forum here which is full of information on that process, although most of it will not apply to your case. You want to pay attention to the many Due on Sale discussions in that forum. If the VA loan is assumable that is also one of your options.
Given that the mortgage balance is less than half the value there should be lenders that will finance this property in your name even if your credit is pretty bad. It is even very likely that the mortgage payment would go down as part of the process.