Yes, you can give the property back to the bank. You can do a Deed in Lieu of Foreclosure. This action alone will save the bank money and time. When anyone leaves their home you should take pictures of the property, exterior & interior. If there is what the bank would consider willful destruction of the property, these actions are not dischargeable in Bankruptcy and the bank could and may come after the client for damages. Many properties that are in distress, are being photographed for the banks, Real Estate Agents are hired by a 2nd party to inspect the properties for the bank to make sure their Asset is being taken care of. Photos, can provide proof that you left the home in good condition. Vacant properties sometimes attract crime. Mr. Blaison's suggestion to try and sell the property (short sale) is best. This accomplishes 2 things, you save your credit on a foreclosure or bankruptcy, and the home usually will sell for a bit more than what a foreclosure sale would bring. Values in your neighborhood will be affected, but not as drastic as a foreclosure sale (usually). Thus, trying to retain higher values in your community for your friends and neighbors.

The bank will not necessarily take back the home. If there are two loans on the property, that creates another propblem. Speak to a REALTOR or an attorney to review all the options and your best solution.

Good Luck!

Laura Giannotta
Keller Williams Atlantic Shore

Hi Al,

The answers below are right, you do have several options at this point. Why do you want to give it back immediately? The Federal government put a hold on foreclosures until April 1st 2009, now the banks are backed up in the process. This is a long process in the state of NJ, it normally takes 3 to 6 months for the bank to file a Lis Pendens (lawsuit) from the time you stop paying your mortgage. It then takes another 12 to 14 months for them to actually foreclose on your home and send it to auction in NJ called a "Sheriff's Sale."

So you see you have at least one year to deal with this issue. You can do any one of the following:

1. Bring the loan Current
2. Apply for a loan modification
3. If you house is worth more than you owe, you can sell it and make up the late fees, etc. and possibly walk away with some cash.
4. If you owe more than the house is worth, you can apply for a "short sale", you do have to qualify and this is a very tricky transaction, so you will need to have someone who has experience in "short Sales".
5. You can give a Deed in Lieu of Foreclosure - this is the process where you give the bank back the house, instead of letting it foreclose on you.
6. Let the bank foreclose.

Since you do have so many options, and a foreclosure will hang around for the next 10 years and affect everything from you buying a car, how much insurance you will pay, renting an apartment and so worth it may be worth while to explore other options.

A successful short sale is listed on your credit report as a debt paid in full and will only hurt you for a couple of years. All the realtor fees, attorney fees & transfer taxes are picked up by the bank if you qualify for a short sale.

I'd be delighted to talk with you and find out which option is in your personal "best interest", my consultation is free and I may be able to help you without you having to pay a dime.

Please feel free to call me at 973-570-0388 or e-mail me at acalvosa@weichert.com.

I wish you all the best.

Al,
Instead of just giving it back, try to do short sale, at least you can avoid foreclosure if it's short sale. If the payment is high and you want to live there, try to do loan modification. So, you have 2 choices (Loan modification or Short Sale) better than foreclosure or just giving it back.

You have options at this point. A conversation might be worth your while. Best, Jonathan