If we sell our house back to the bank...?

Question

We have only been in house for a year and a half, but the value has depreciated in that time. If we "sold" our house back to the bank, what would happen with the money left over, as far as what we owe? Would we continue to make mortgage payments or what? Money is too tight with the cost of living, and we are looking for other options...we just can't afford our home :( How does that process work? Any other ideas?

Answer 1

You do not sell your house back to the back.  The bank forecloses for non payment.  You are still responsible the the difference between what the bank can sell it for and how much you owe. If the Bank sells house for 150k and your mortgage balance is 200k  You will have to pay the 50k difference.  Your credit will be destroyed

Answer 2

You don't "sell" your house back to the bank.  If it is worth more than you owe, you sell it to someone else and the bank will be paid off in closing.  Whatever is left over after closing costs will be paid to you.

If you cannot sell your house for enough to pay off the bank, you may ask the bank if they will take a deed in lieu of foreclosure.  If they do that, you are off the hook.  If you owe more than it is worth, the bank is not likely to agree to do that.  Sometimes you can arrange a short sale but they are tough to pull off.

If you can make your payments, just keep living there and this, too, shall pass.  You may have to cut back but perhaps you can work it out.

Foreclosure is a last resort.  You really don't want to have that clouding your record for many years.  

Answer 3

no no no that is the worst thing you can do lets work the whole thing through I would either do a loan modification or a short sale contact me ill be happy to help