If someone is starting to be late with their mortgage payments, can they give back their house to the

Asked by Lori Aubin, Florida Sun Oct 28, 2007

mortgage company? The latest appraisal was higher than the mortgage balance and they have been unable to sell.

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Tracy Bedenb…, , Metro Atlanta
Sun Oct 28, 2007
You should contact the mortgage company to discuss your options with them. Many are working with buyers to resolve such issues. They may be willing to work out a payment plan or even let you skip a payment and wrap it to the end of your loan. Hope this helps.
2 votes
Ute Ferdig, Agent, Auburn, CA
Sun Oct 28, 2007
Hi Lori. I think some banks may entertain a deed in lieu of foreclosure once the borrower is sufficiently behind, but if there is mortgage insurance, the bank may not be able to accept a deed in lieu of foreclosure. Your client should contact the loss mitigation department and discuss the options. They'll tell your client what's possible and what is not. Each bank has different procedures which makes it impossible to give a general answer to your question. I hope this helps.
Best of luck,
Ute Ferdig
Web Reference:  http://www.theMLShub.com
1 vote
Don Lantier, Agent, smyrna, GA
Sun Oct 28, 2007
As Tracy responded...Call your lender immediately and let them provide you with your best options under your circumstances. The most important tip anyone can give you is to call your mortgage company YESTERDAY!!!!

Wish you the best!
1 vote
Brett Dunne -…, Agent, Upland, CA
Sun Oct 28, 2007
Lori:

Depending on where the property is located, some appraisal could be high IF they are using recent solds only. This is because values are going down in most areas.

The term used in "giving the property back" can be called "deed in-lieu"

Good Luck
1 vote
ian cockburn, Agent, New Orleans, LA
Wed Oct 31, 2007
Yes you can...it is called a short sale....but I would go talk to the mortage company
Web Reference:  http://iansellsnola.com
0 votes
Salt Lake Ag…, , Salt Lake City, UT
Mon Oct 29, 2007
First contact the bank and let them know your circumstance and then Find a Realtor that specializes in what is called a short sale.

A deed in-lieu in of foreclosure is the same as a foreclosure on your credit report. There are other options.

The trick now is not to avoid credit damage, but to minimize it.

Also contact an FHA Mortgage specialist in your area and see if you qualify for FHA secure. It is government program designed to help those that were on good standing before an adjustable adjusted.

As for the appraisal being higher than the mortgage balance, well now we know the value of the appraisal.

Again you have options.

Good Luck
0 votes
Carrie Crowe…, Agent, Southaven, MS
Mon Oct 29, 2007
Lori,
It is a difficult time in the mortgage world. There are many buyers facing the same situation. Are they talking with their mortgage company? Communication is the key. Keep the lines of communication open. The bank would prefer to be able to work something out.
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more