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can i get a deed in lieu if my 1st and 2nd mortgages were included in a bankrupcy 2 1/2 years ago? or should i just walk away?

Posted on: 22nd May, 2011 06:14 pm
both my mortgages were included in the bankruptcy and my business has dropped off to the point where i am now 5 months behind on both. they haven't foreclosed yet, but it is imminent. i have already made plans to move and, at this point, i am just planning on walking away and mailing them the keys. i am moving in with my girlfriend who owns her house outright, so i am going to be saving $1350 per month in mortgage payments alone. at this point i have approx. $12,000 in negative equity and both the a/c units have gone out to boot. any downside to just walking away, other than credit rating? short sale and refinance are not good options for me. i am relocating to another city.
Hi mdawson!

Welcome to forums!

You can walkaway from the property and the lender will foreclose it in order to recover as much dues as possible. If you haven't reaffirmed any of the mortgage, then none of the lenders will be able to come after you in order to recover any dues. It will be same in case of a deed in lieu of foreclosure as well. So, it will be your discretion as to which option you will choose.

Feel free to ask if you've further queries.

Sussane
Posted on: 22nd May, 2011 07:21 pm
if i mail the house keys to the mortgage companies this week, how soon can i cancel the homeowners insurance. my agent says i get a refund of the balance. i have not reaffirmed either mortgage verbally or in writing; i have just continued to make payments until the last 5 months.
Posted on: 22nd May, 2011 08:20 pm
Hi mdawson!

Welcome to forums!

Once you mail the house keys to the mortgage company, you can contact your insurance agent and cancel the homeowner's insurance.

Feel free to ask if you've further queries.

Sussane
Posted on: 23rd May, 2011 12:55 am
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