I have been unemployed for some time and believe me, I've tried to get back to work. Anyway, I don't have any money left and I cannot pay for my mortgage any more. I am current on my payments, but I've come to the end of the rope.
I know I can default my payment and see what happens. I know I could "borrow" money from a credit card or a relative. But, here is the question... Can I just sign all papers and "surrender" my house to the bank? If I stop paying, they will come back after me, ruin my credit and eventually repossess and foreclose my property. I just want to cut the "middle process" and simply surrender my property to the bank, pack my things and leave. Is this possible?
2007-11-24 06:26:48 · 5 answers · asked by zaxxon 3 in Business & Finance ➔ Renting & Real Estate
Zaxxon there is no easy and clean exit from this. I suggest you start by calling your lender and talking with someone in their foreclosure department to see if something can be worked out. Yes you could just give them the "Deed in lieu of foreclosure", but it is still a hit on your credit history and rating. You could let them foreclose, but again it will impact your credit history, score and make it difficult to get credit. What you aren't thinking about also, is if you decided to rent somewhere, they too will check your credit. That could make it difficult to find a place. Try to work things out with your bank. Take some temporary job through an agency for awhile. Take in a renter to help you pay the mortgage. Sell stuff to get the money. But fight dear, fight like hell to keep what you have earned. Don't give up, keep fighting.
2007-11-24 07:22:36 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Since you seem to have ruled out the obvious solution, sell the property, I am assuming you currently owe more than the market value of the property? If not, look into selling first!
If selling is not an option, begin negotiations with your bank. What you are proposing above (surrender...pack..leave) is signing a deed in lieu of foreclosure. This is still considered a default, so talk to the lender first to see if you were to sign a deed in lieu..., that they will not file a judgment against you for any shortfall when they sell the property. That is why if you have any option to sell it, that is FIRST CONSIDERATION.
So, the answer to your last question "Is this possible?" is YES, BUT not without potential negative impact to your credit. If it were that easy, everyone in a tight spot would do it and we would have even more mortgage financing problems than we already are facing.
2007-11-24 07:14:17 · answer #2 · answered by Chuck92121 2 · 0⤊ 0⤋
Depending upon the equity you have built up on your home( the amount of principal you have paid) would determine the course of action you must take. If there is a way to renegotiate the mortgage so you are paying less each month over a longer time you may want to consider. Going to the relative is the last resort. Never think of using the credit card to make payments. You might be in debt the rest of your life.
2007-11-24 06:52:42 · answer #3 · answered by googie 7 · 0⤊ 0⤋
it truly isn't any longer so easy as some would say so, there are particular criteria to fulfill to be eligible for mortgage suggestion. (a million) lack of earnings (no job), (2) lack of earnings (even as purely one kin member has a job, even as 2 or extra earning were injected into the non-public loan funds). So, by basically deliberately no longer paying your own loan once you've the elements gained't qualify you for any bail out monies.
2016-10-25 00:07:56 · answer #4 · answered by kelln 3 · 0⤊ 0⤋
what you need to do is simply talk to the mortgage holder, e.g. bank. Explain the situation and there may be something they can do. They seriously do not want your house or have to foreclose on the house... it basically means they will lose a bunch of money too.
last resort would be to sell it if there is a chance to do so.....foreclose, and you lose. Don't be shy and talk to your debtor.
2007-11-24 07:40:29 · answer #5 · answered by Marc 3 · 0⤊ 0⤋