Foreclosure in San Francisco>Question Details

Doubled, Home Owner in Douglasville, GA

Is there a procedure where you can sale the home back to the bank, for the amount left on mortgage?

Asked by Doubled, Douglasville, GA Sat Feb 5, 2011

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9
You could ask if they would do a deed for keys and see if they will just let you walk away.
1 vote Thank Flag Link Sat Feb 5, 2011
That is sort of what happens with a foreclosure. The alternative for the homeowner is a deed in lieu of foreclosure where the bank, if they accept that proposal, will take the keys and the title to the house and avoid conducting the foreclosure action. The reason for that might be because going through the foreclosure will require additional costs (court, holding, loss of income, interest, penalties, etc.). As for the selling back to the bank, if at the public auction (foreclosure) no one bids on the house, the banks sole bide is the amount owed to them by you -- the borrower.
0 votes Thank Flag Link Thu Mar 31, 2011
Before you do a deed in lieu of foreclosure, make sure this is what you want to do. One option is for you to do a short sale which has less devastating (and shorter) effect on your credit. In our society, credit worthiness goes a long way in terms of qualifying to rent a place, buying another property in a few years, qualifying to other loans (say, for a car), even qualifiying for job with security clearance.

Talk to a seasoned and experienced realtor, such as one with a CDPE designation (Cenrtified Distressed Property Expert) who can help guide you or help you understand the ramifications of a short sale versus a foreclosure.

Wishing you good luck on your decision-making
0 votes Thank Flag Link Thu Feb 17, 2011
Contact you lender where they might be able assist you with all questions you have. They can provide you several programs work with short / long term goals for both you and your lender


Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 8, 2011
If you have more than one mortgage, you wont be able to do a deed in lieu, and most likely the lender will want you to try to sell the property before accepting a deed in lieu. It is not clear whether you are upside down on this property, but it sounds like your best bet is to sell. Talk to a local realtor about the value of your home and your options in selling it.
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Tue Feb 8, 2011
Deed in Lieu of Foreclosure - you give the keys back and the bank does not have to go through the foreclosure process. If you have more than one lien on the property the bank may require you to clear those up. You absolutely need to speak with a qualified real estate attorney. Good luck.
0 votes Thank Flag Link Mon Feb 7, 2011
You can do a deed in lieu of foreclosure. The bank agrees to take title to the property in exchange for not foreclosing on your property. Depending on the type of loan your have - recourse or nonrecourse - the lender may agree not go after you for deficiency.
0 votes Thank Flag Link Sat Feb 5, 2011
Banks are not in the business of buying houses back. If you are having a problems making your mortgage payments, you need to checkout your options. First, start with contacting your bank to see what type of loan modification programs they have available for you. You can list the property for sale as a short sale, assuming that you owe more than the property is worth, but need to certainly check out all the pros and cons to doing a short sale. You can also contact your lender to do a "Deed in Lieu of Foreclosure". You can also contact a real estate professional in your area who is experienced with these options to help you further.
0 votes Thank Flag Link Sat Feb 5, 2011
Doubled,

Boy would that solve a lot of problems for today's homeowners but in doing so would put banks in a position to pay more for the property than it's worth. Banks are not in the business of buying homes....their purpose is to loan other's money for the purpose of ownership.

Bill
0 votes Thank Flag Link Sat Feb 5, 2011
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