If I cannot pay my mortgage anymore...can I?

Question

can I legally give my town house to the bank and let them know I will no longer make payments. what is the responsible thing to do. Can you please share info with me??? I have fought to keep my house but I can't pay it no more. The bank doesn't want to work it out with me. On top I have an interest only loan please help.No stupid comments like get another job or s*** like that
Do I have to let the township and association also? I

I can't sell it because I just bought it a year ago...I tried and did not work. Could not sell it because I bought it when the market was up and now the prices are down. I'm screwed totally.

Answer 1

You can negotiate with the bank to take ownership of the property. They may or may not agree to it. Either way, if the bank loses money in the deal, they are likely to file the money they lost as income for you - therefor you will have to pay taxes on that income.

I recommend you try to sell it first. I know the market is slow, so try selling it through non-standard means, such as a lease-option. You may be able to find a buyer who will pay you enough to pay your mortgage, plus more. A foreclosure leaves a terrible scar on your credit. Keep finding a way to make this into a win win situation.

Answer 2

Once U take a loan on ur property, U literally donot own it until it is fully paid up. Unfortunately, banks in the US are unscroupulous & they will not give a darn & will take it away from U soon as U default 1 month.

why should U "give it up"?? If U cannot make any more payments then U have no choice.

There is nothing U can do about it because the employees & bank lawyers will have the pleasure of calling U & some abuse U for defaulting in payment.

If U are still earning then U still have a chance to negotiate with the banks on ur next mode of payment & how much U can pay monthly.

U have said it, the banks are just GREEDY & MEAN dogs in a manger.

Answer 3

Selling the townhouse would be the smartest thing to do.Do NOT let the bank take the house it would go into foreclosure and that is one of the worst things to have on your credit record. Put the home up for sale, and notify your loan company that the home is on the market. This should keep them on hold as long as the home sells in a fair amount of time. Best Wishes!

Answer 4

Yup, unfortunately you're screwed. If you don't pay, eventually the bank will foreclose and take it back - but they'll sell it, and if they get less than what you owe, and it sounds like they would, then you'll still owe the rest.

Picking up a second job isn't s***, by the way, it's reasonable advice if you aren't already working two jobs.

You might be wise to talk to a lawyer to help find out what your options are. Bankrupcy might be your only real option - not a good one since it has a lot of fallout for many years, but might not be a lot of choice.

Good luck.

Answer 5

I would highly suggest going to a mortgage company (not the one you are currently with) possible a smaller one where you can get face to face with them. Explain your situation and see if they can help you refinance at a better rate. I am sorry this has happened to you. You may be able to get a renter in there until you are in a better position to sell. I just helped my neighbors get a renter in their place to prevent foreclosure and they are thrilled! Get out of the interest only loan no matter what you do. Good Luck

Answer 6

stupid comments like get another job? LOL! Hey how about inviting me & my friends to your foreclosure party if you decide to have one. I'll bring a sledgehammer. lol! No offense! Just having fun!

Answer 7

First you should try to sell it.

If you're unable to sell it, you could look into the quit claim process.

Answer 8

Any chance of selling it quick?
That'd be your best option.
You would save your credit rating and could put money in your pocket.