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You should speak to the lender about giving a "deed in lieu of foreclosure". It does less damage to your credit record than a foreclosure. You should ask about the bank's policy if there is a deficiency between the present value of the property and the amount of the loan. You should also speak to a tax advisor to determine if there will be tax consequences when you file your tax return for the year.
What else can I help you with?
What is the difference between a foreclosure and short sale?
A foreclosure is the surrender of the property to the lien holder for nonpayment of the debt. A short sale is the sale of the property before the completion of the foreclosure in an attempt by the home buyer and the lender to avoid foreclosure proceedings.
What happens if you surrender your home?
If you mean by surrender you are in foreclosure, the answer depends on how far along in the process you are and how much equity you have in the property. The short answer is you will still have damage to your credit rating and a foreclosure on your record. You should call your lender immediately to try to work out alternate arrangements. They generally do not want to foreclose and will try to work with you.
When a bank seizes and sells a home to get as much of its loan back as possible?
That is known as foreclosure.
Is foreclosure different from surrendering a home?
Yes. Foreclosure includes a forced sale, usually at auction, which runs up the legal expenses and other costs in a hurry (survey, appraisal, publication, auctioneer's fees, etc). A surrender is much less complicated.
Can you surrender your house to stop foreclosure proceeding?
Not likely outside of bankruptcy. It is called a "deed in lieu of foreclosure" and few lenders would be willig to do that unless the value of the property was close to what is owed. In a c. 7 or a c. 13, you can surrender the house.
What are penalties of foreclosure?
You lose your home and any equity you had invested in it. If the eventual sale of the home does not cover your debt to the Lender, they may come after you for the difference. This could result in a judgment against you. Your credit score is adversely affected by the foreclosure, and possible judgment.
Can you rent out your home while home is in foreclosure?
Yes you can, but in most states you have to tell the potential tenant about this foreclosure.
Can a second mortgage put your home in foreclosure?
Yes, any unpaid mortgage can put your home in jeopardy of foreclosure.
Is there such a thing as a voluntary surrender of mortgaged property without foreclosure?
Yes. In Massachusetts and other states there is a procedure whereby the mortgagor gives the bank a deed in lieu of foreclosure. You should discuss a "deed in lieu of foreclosure" with the mortgage department of your lender.
In California what is the time limit for moving out of a foreclosure?
what is the time for foreclosure on a home in california?
If your renting a home in foreclosure when do you stop paying rent?
Not until there is a foreclosure sale.
You filed chap 7 bankruptcy 6 years ago and have been making payments can you give back the home to the lien holder without going through foreclosure?
You can give back the home to the lien holder without going through foreclosure. You just need to make arrangements with the lender. It is not smart at this point to surrender your house after so many payments.
