What are the consequences of surrendering your home to the mortgage company?
April 28th, 2010 | 
Author: I hаνе bееn unable tο sell mу ancient home аftеr more thаn a year, аnd mу wife аnd I аrе unable tο afford upkeep οn two houses. Thеrе іѕ sufficient justice іn thе home tο cover thе finance аnd I јυѕt want out.
Posted in Mortgage FAQ
just give it back to the bank in deed … there is a term used for this , you can search internet sites to get some more information, most of the time you can give back without penalty if you dont owe on it..
Don’t do it! It will hurt your credit rating. Also, the lender will try to sell it as soon as possible and if they don’t get sufficient when they sell it to cover the balance, accrued interest and expenditure, you will receive a 1099 for the amount they may have to eat. That amount has to be declared as income on your Income Tax.
There are 3 main factors in a homes value: LOCATION, CONDITION and PRICE.
Location is fixed. Condition can be changed. Price can be changed. Get a Realtor to do a realistic Comparative Market Value Analysis, and to give you advice on condition and price. Then have them get it on the market, priced to sell. If there is really justice there, they can get it sold for sufficient to get you out.