Deed in Lou

I am in the process of having a LM done, but the servicing company will not responed. I am in foreclose not 1/16/09, Hired an attorney, but after putting 2 and 2 together me and my husband really don’t think that we will get the LM and can’t afford the mortage, we are upside down in the house.

Can we tell the attorney that we would like to give the house back to bank and walk away owing nothing, I am so sick over this I can’t sleep or eat.

Thanks for doing a good job of answering people in need.

Thanks,
Lou

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Hello Lou,

What you are referring to is a deed-in-lieu of foreclosure.  Generally, if you have one mortgage on the property then it may be possible to negotiate a deed-in-lieu; however, the bank would prefer a short sale because the banks are insolvent – they don’t want and can’t afford the carrying costs and expense of real estate owned (REO).

Read: Deed in Lieu and Who Said There’s No Buyer For Your Short Sale?

Thanks for the questions and hope this helps.

Paul