Can I surrender my home even though I am not in bankruptcy? 24 Answers as of January 16, 2014

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GARCIA & GONZALES, P.C.
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Yes and know. Talk to the mortgage company about a deed-in-lieu of foreclosure, or a short sale. There are a lot of real estate professionals that can help you with this matter. While filing bankruptcy is certainly an option, it is not your only option (I'm assuming you don't have much other debt).
Answer Applies to: Colorado
Replied: 1/16/2014
J. Baron Groshon, P.A. | J. Baron Groshon
You can still surrender your home, even if you are not in bankruptcy. However, the mortgage company may be able to sue you for a deficiency owed on the mortgage debt if the sale proceeds from the foreclosure sale are insufficient to pay your mortgage debt in full. The benefit of the bankruptcy filing would be to discharge you from any personal liability for any such deficiency amount owed.
Answer Applies to: North Carolina
Replied: 1/16/2014
Stephens Gourley & Bywater | David A. Stephens
Yes, if the mortgage company will take it. You may still have to deal with a claim for a deficiency.
Answer Applies to: Nevada
Replied: 1/16/2014
The Law Office of M Grater LLC
The Law Office of M Grater LLC | Mark O. Grater
You can but they may come after you for any deficiency.
Answer Applies to: Connecticut
Replied: 1/15/2014
Law Office of Mark B. French
Law Office of Mark B. French | Mark B. French
Yes, you can surrender your home if it is subject to a mortgage. I think that your question may really be what effect that will have on you afterward. If you are a resident of Texas and you have a conventional mortgage (not a "reverse mortgage" or "home equity loan") then the house will be foreclosed on by the mortgage company. If your former home is not sold for as much as what is owed to the mortgage company then you will be liable to the mortgage company for any deficiency. A bankruptcy can help in this situation by relieving you of the liability for any deficiency.
Answer Applies to: Texas
Replied: 1/15/2014
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    It is called a "deed in lieu of foreclosure". You would have to submit application to the bank. The bank will ask you to try to sell it first as a short sale, so you should call an attorney who can negotiate short sales to start.
    Answer Applies to: New York
    Replied: 1/15/2014
    MCBRIDE LAW OFFICE | Robert E. McBride
    In most cases you may. However, the mortgage holder is not required to accept the home. If you surrender the home you may be held liable for any deficiency sustained by the mortgage holder. Obviously, you should try to sell the home if there is significant equity.
    Answer Applies to: Pennsylvania
    Replied: 1/15/2014
    Stuart P Gelberg
    Stuart P Gelberg | Stuart P Gelberg
    Yes it is called a deed in lieu.
    Answer Applies to: New York
    Replied: 1/15/2014
    Idaho Bankruptcy Law | Paul Ross
    You can walk away from your home at any time. But without bankruptcy, you could be liable for any deficiency on the home.
    Answer Applies to: Idaho
    Replied: 1/15/2014
    Janke Legal Consulting | Bruce C. Janke
    Surrendering your home has nothing to do with whether or not you are in bankruptcy. If your mortgage loan is "under water" (loan balance exceeds what you could sell it for), then you have a couple of choices other than bankruptcy. You can explore the possibility of a short sale (you sell house for best price you can get and lender agrees to accept that amount in full satisfaction of the loan). You should talk to a real estate broker about this possibility. He/she will not charge you for this. The second option is surrender. But even if you do choose this option, you should not just walk away. You may be able to negotiate a "cash for keys" deal with the lender whereby the lender pays your moving expenses or other substantial sum in exchange for you moving out by a specified date, thereby saving the lender the cost and time of foreclosure.
    Answer Applies to: California
    Replied: 1/14/2014
    Deborah F Bowinski, Attorney & Counselor at Law | Debby Bowinski
    Your lender(s) may or may not be willing to accept your deed in lieu of foreclosure. And your lender(s) may or may not pursue you for any unpaid balance(s) on the mortgage loan(s), depending upon what state you live in.
    Answer Applies to: Colorado
    Replied: 1/14/2014
    Stacy Joel Safion, Esq.
    Stacy Joel Safion, Esq. | Stacy Joel Safion
    Why would you do that? It is better to short sell it. A deed in lieu of foreclosure reads as a foreclosure on your credit report.
    Answer Applies to: California
    Replied: 1/14/2014
    Patrick W. Currin, Attorney at Law | Patrick Currin
    Surrender is a negotiation (deed in lieu of foreclosure), so you need to have the lender agree on it if you want to avoid foreclosure.
    Answer Applies to: California
    Replied: 1/14/2014
    Danville Law Group | Scott Jordan
    Do you still like in the home? Why do you want to surrender it?
    Answer Applies to: California
    Replied: 1/14/2014
    Law Offices of Linda Rose Fessler | Linda Fessler
    I do not know why you would want to surrender it. Many times you can stay in you home a year or more after they have sold the property without paying any rent. I really need more details.
    Answer Applies to: California
    Replied: 1/14/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If you only have purchase money first deed or second deed of trust, yes. In California there is no deficiency when the bank forecloses on purchase money loans. If you got a second after you purchased or refinanced, then there would be a deficiency owed.
    Answer Applies to: California
    Replied: 1/14/2014
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    You can offer a deed in lieu.
    Answer Applies to: New Jersey
    Replied: 1/14/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    You can transfer your home to your lender if and only if they agree to accept the title. This is usually called a "Deed in Lieu of Foreclosure." Or you can try to sell your home to someone else, but they will have to pay the mortgage in order to keep possession of the title.
    Answer Applies to: Nevada
    Replied: 1/14/2014
    Goldsmith & Guymon
    Goldsmith & Guymon | Marjorie Guymon
    Surrendering your home in bankruptcy me that you are allowing the creditor to foreclose. You may certainly walk away from your home outside of bankruptcy and allow the bank to foreclose. However, I do not recommend it. Without bankruptcy, the lender will foreclose and sue on any deficiency or issue a 1099 equal to the amount of the deficiency. If you cannot file bankruptcy I recommend trying a short sale.
    Answer Applies to: Nevada
    Replied: 1/14/2014
    OlsenDaines, PC
    OlsenDaines, PC | Kristoffer Sperry
    When you're ready and willing to surrender a home to your lender you generally have several options outside of bankruptcy. You can negotiate a deed-in-lie of foreclosure which involves you turning over the home and the lender can avoid the foreclosure process. This still hurts your credit but it avoids a lot of hassle for the lender, sometimes they may offer you a small payout for this, it is referred to as "cash-for-keys." You can also just live in the home until foreclosure at which point you'll need to move sometime prior to the foreclosure. Another option may be a short sale. This can be time consuming process which involves getting a realtor and trying to negotiate a sale of your home for less than what is owed. Depending on where you live the lender may not be able to recover any amount still owing on the loan after the foreclosure. Also, there may be tax consequences to a foreclosure or other method of turning your house over outside of bankruptcy so be sure to consult with a CPA.
    Answer Applies to: Idaho
    Replied: 1/14/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    You can if your lender will accept a Deed in Lieu of Foreclosure.
    Answer Applies to: California
    Replied: 1/14/2014
    Lynch Law Offices, P.C. | Roseanne N. Lynch
    Not usually, the Bank will not just take the house back. Moist likely you will have to list the home for sale for at least 3 months and then if it cannot be sold or the Bank will not approve a short sale there may be a program that will allow you to just give a deed back to the bank. You should consult an attorney so that you will be advised as to what consequences you will face if you have a debt forgiven.
    Answer Applies to: Illinois
    Replied: 1/14/2014
    Kirby G. Moss PC | Kirby G. Moss
    Yes, but you should try and do it via a Deed in Lieu of Foreclosure wherein the lender agrees to not pursue any delinquency if house sells for less than owed. Professional help recommended!
    Answer Applies to: Indiana
    Replied: 1/14/2014
    Law Offices of Marc Weinberg | Marc Weinberg
    If you stop paying, eventually the bank will foreclose and take it back. You could give the bank a "deed in lieu of foreclosure".
    Answer Applies to: California
    Replied: 1/14/2014
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