Background,
A woman who couldn't afford her payments left Maryland. Her bank started foreclosure and stopped about 1 1/2 years ago. She filled out the paperwork for a deed in lieu of foreclosure and the bank refused to accept it. For 6 months or more she begged the bank to foreclose because she didn't want the liability of a vacant house in Baltimore. The Bank has done nothing.

The deal
We share the same lawyer and he asked me if I wanted the property for free, with the caveat that there was a $200k Mortgage. Out agreement states that she is aware that my taking the property will have no affect on her obligations to the bank. If there is a foreclosure it would show on her record and she would be liable for any deficiency.

Research
I asked three attorneys if it was legal for me to accept rent payments while not paying the mortgage. All concluded I have no obligation to the bank. They also felt I had little risk with the tenant because if a bank forecloses they are obligated to honor the lease. However they recommend and I obviously would disclose the possibility of foreclosure to a tenant. I will likely use a month to month rental agreement.

Tonight I read in a thread about Quit claim deeds, about "Rent Skimming" laws.