If you need additional information, feel free to visit my website on these and other programs.
Best of luck to you.
You've received some good information below. Obviously you do not want the property any longer since you said you wanted out but if you do want to retain it, applying for a loan modification is a wise decision. Depending on your income, hardship, etc. you may qualify and usually during the loan mod process, the bank will temporarily hold the foreclosure action.
If you truly do not want it and the bank will not accept a deed in lieu of foreclosure, unfortunately, you can either follow the steps the bank is proposing or do nothing and eventually they will foreclose on the property. With that being said, typically the bank will ask what your intention is (to keep the property or not). If you don't want the house any longer, I can't see them forcing you into a loan modification.
As recommended below, a short sale may truly be your best option. The bank gets partially paid and most likely you can negotiate with the bank for a full release.
Gina Chirico, Sales Associate
973-575-6353 ext 17 office
As always, Essex County Real Estate at its BEST!
Why would you let your property go to foreclosure and ruin your credit? You can do a short sale. We are a professional short sale service. Please call us directly to discuss your specific situation. Our services are FREE to homeowners. We look forward to hearing from you.
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
You can short sale if you have a hardship: http://sicklervilleshortsalerealtor.com/2011/01/can-i-short-
Don;t let the bank foreclose. Find yourself a good foreclosure realtor and prepare a short sale interview. A lawyer will not hurt either but a good knowledgeable realtor will have all the info you will need.