What are the consequences of surrendering your home to the mortgage company?
April 28th, 2010 | 
Author: I have been unable to sell my old home after more than a year, and my wife and I are unable to afford upkeep on two houses. There is sufficient equity in the home to cover the mortgage and I just 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 enough when they sell it to cover the balance, accrued interest and costs, 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 altered. 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 equity there, they can get it sold for enough to get you out.