I surrendered interest in my house through a Quit Claim Deed to a
company that "buys" homes from individuals that are in a hurry to sell
their property. In my situation, I had another home that I was closing
on, my first home had been on the market for some time and it was near
closing on the new home. The company holds the deed to the house
although the mortgage stays in my name until they sell it.  The
company leases the home with option to buy and it must be sold within
5 years.  My problem is this: I signed the contract in December 2005.
I paid the first month's mortgage, as agreed before signing the
contract.  The company paid February's payment and March's payment;
they had new tenants in the home in March.  In April, I began
receiving calls from my mortgage company for late payment (which
became nonpayment) of April?s house note.  May's payment is now in
nonpayment status. I spoke with the company and their response was
that they did not have the money to move around (whatever that means)
to pay April's or May's note. They said they would catch up June 17th
(which would make June's payment also late). My credit score dropped
70 points from April's nonpayment and I am sure May's will have a more
dramatic effect. I consulted with an attorney who suggested I ask them
to deed the property back to me. I did just that. They agreed but have
not followed through on the agreement. They do not answer my calls or
return them.  When I was in conversation with them regarding
transferring the deed back to me, I was asked if "I" could pay the
money due. They told me that would be the way to get the payment
up-to-date. Of course, I did not agree to that; I told them I did not
have the financial means to make 2 house notes. They then asked me to
sell some jewelry or my car or try to borrow the money from someone. 
I disagreed with this, also. They said there was nothing they could do
until the middle of June if I did not pay. This company also tried to
entice me to pay by stating they would "double" my money back upon
cash out of the house. This does seem ethical. My question is to
whether there is anything I can do to this company, how can I stop the
effect it is having on my credit, and is there a way to legally get
the Quit Claim voided since they are in default? Is there anything I
can do?

This is no answer, and certainly no legal or professional advice, as
you can read in the disclaimer below.

It sounds like you have gotten into a bad corner by signing a quit
claim deed while still being obligated for mortgage payments, and it
sounds very much as though the outfit is not just naive but rather
like a scam, although what has developed may not be illegal,
unfortunately.

A lot depends on the actual documentation, and maybe on whether the
quit claim deed has be recorded with the county recorder, something
you can find out at the county offices, or on internet if the county
has its records online.

It would help a Researcher if you would post a classification
mentioning the state and county the property is in and the parcel
number, as well as as any details about the documents between you and
the company, such as the terms of when it has to pay you under the
deed, if it is obligated to apply lease payments on the house to meet
mortgage payments  -  and anything else.

This is a legal issue and you consulted an attorney. Why get advice from here?
Go back to the attorney.  What does your agreement say? Things like
this are settled in civil court.

Either the attorney is a dolt or you told him (or her) that you could
not afford to engage an attorney. This is absolutely something you
need a lawyer for, and now. Get a different one than the one you
consulted with.

At a minimum, you must stop talking to the company on the telephone
and begin writing them certified letters. If they accept them, they
have been contacted. If they refuse them, that is evidence as well.

Get thee to a real estate lawyer!