how to relinquish my house to mortage/ lender
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
how to relinquish my house to mortage/ lender
my home is damage due to mold and water. the damage exceed the value of the house, so what can I do to give up and not get penalize by lenders for walking away from mortage
Asked on June 20, 2017 under Real Estate Law, Michigan
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 7 years ago | Contributor
You can't relinquish it to them unless they voluntarily accept it--you can't force them to take the home. If it's in the shape you describe, it is very unlikely they will want it, for the same reason you don't want it--it needs expensive repairs to have any value.
And even if the do take it, that does not wipe out your debt: the home will be sold at auction, and whatever it brings in--likely to be little, given the condition you describe--will be taken off what you owe (after first subtracting the cost of the sale from the proceeds); you'll still owe whatever is left. Your debt would only be eliminated if they agree to take the home as payment or settlement in full of the debt--and again, given the impaired value, this is highly unlikely.
So you can talk to the lender about this, but it is unlikely to happen, or if it does, to help you in any significant way.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.