How would I be able to give my mortgage company possession ofmy house?

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How would I be able to give my mortgage company possession ofmy house?

I own a home in AL; I live in LA.  I have tried to sell, rent bond for title etc. I have not missed a payment yet, but am facing financial hardship now. I would like to give the mortgage company possession of the home. How would l be able to do this legally? My credit is not so great now, what type of financial situation would this leave me in? What might I be left owing?

Asked on July 27, 2010 under Real Estate Law, Louisiana

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

I am going to assume that the house is worth less than what you owe on the mortgage.  You have a few options if you just want to be done with owning the home.  First you can see of the bank will let you do a "short sale" meaning that you are selling it for less than the mortgage.  Just make sure that they waive their right to a deficiency judgement. That means that they will not come after you for the amount that remains on the mortgage.  Another option to discuss with the bank is to allow you to execute a "deed in lieu of foreclosure" which lets you turn over the house to the bank and the will waive the deficiency here too.  This saves them the cost of foreclosure proceedings.  If you want to keep the property try and modify the mortgage to a lower payment. There are counseling agencies listed on the state attorney general's office website. Good luck.


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