Can I get a deed-in-lieu of foreclosure?

Question

I am going through a divorce and living in a rented room while my ex-wife is in the house. Because the mortgage is in my name I am paying all of it and she stopped helping. I'm running broke. Trouble is, I can't sell the house because the property is in both names. So I'm stuck paying for a place I can't afford. She doesn't want to sell until at least next summer, and we may have difficulty selling it for full value anyway.

My question is, will I be able to give the bank possession of the house through a deed-in-lieu because I own the mortgage? Or am I unable to do this on my own because the house is in both names? Is it a reasonable option to just stop paying and foreclose?

Answer 1

A Deed in Lieu is fantastic, but doesn't mean it will be approved. First thing is to find a local realtor that understands "short sales" and talk about listing it. Banks want to see you have tried to sell it before they bargain. I know someone who just got a Deed in Lieu approved and many short sales approved. Take care of it and work on it before it's too late. You need help. I am not making recommendations, but you can try

www.foreclosurehero.com

It's free

Answer 2

You cannot give your home away if its in both names.  My suggestion to you would be to give CCCS a call and ask to speak to a housing counselor.  Its a free service as they are a United Way company.  They can give you suggestions to get you out of a tough situation 1-800-251-CCCS (2227)

Answer 3

You may be in contempt of court if you just stop paying, you should talk to your divorce attorney about that one.

You can not give the bank the deed by yourself, she has to sign off too.