Local woman's mortgage surprise: Paying for someone else's house

Local woman's mortgage surprise: Paying for someone else's house »Play Video

PORTLAND, Ore. - You're working to pay your rent or mortgage. But what if you found out you owed another mortgage on top of that for a house you don't even own?

A Portland woman said it's happening to her.

Racheal Murray said she is being held responsible for a mortgage for someone else's house.

"Personally, I really feel like I've been hit with a sledge hammer," said Murray.

Murray said she and her former husband, David, bought the house seven years ago. She said they divorced in 2009, and, as part of the process, they went to Chase bank and asked for David to take over the loan.

She said was a long, arduous process that stretched out for years.

"It took quite a while," said Murray. "There was always, 'We need this now, we need one more thing, now we need this, you need to sign this, go get this notarized.' But we just dogged it until we got it---what we thought was---done."

She said the bank told them it was taken care of, and she filed a quit claim deed with the county, making her ex-husband sole owner.

David Murray passed away last year.

"He died thinking it was taken care of," said Racheal Murray.

But Murray said a few months after her ex-husband's death, Chase started dinging her credit. When she called to find out why, she said Chase told her she was still accountable for the loan.

Murray said Chase told her she and her ex-husband had done a transfer agreement instead of a loan assumption, which means she is still responsible for the loan, even though her name is not on it and she doesn't own the house.

She said she and her ex-husband had gone in and explained what they needed, and she believes Chase gave them the wrong paperwork.

"I said, 'This is what I want to do, how do we go about it?'" said Murray. "They directed the whole thing."

She said she did not know there was an error until she saw the hits on her credit report and called to find out why.

Murray said she can't enter the house and can't sell it, because it is not hers.

A Chase spokesperson said the bank has no comment, except to say that they no longer hold the loan and did not foreclose on Murray.

Murray said she trusted the bank to give her the right paperwork, and now realizes she must verify this kind of information on her own when working with a bank.