Unfortunately it’s just not that easy.
Despite popular belief that you can just slip your keys in an envelope, mail them to your lender and then walk away from your house- it simply doesn’t work that way. Giving the house to the bank – known as a deed in lieu of foreclosure, involves a process and the lender does not have to agree to a deed in lieu. You can call the lender and discuss the deed in lieu and they will tell you what the process is and you can apply. However a deed in lieu is usually not a possibility for you:
- If you have more than one lien against your property
- Until you have attempted a short sale
Most lenders will force you to consider alternative solutions before accepting a deed in lieu, and will want to see your house listed as a short sale for a period of time before accepting the deed in lieu. After going through their application process, and/or attempting a loan mod or short sale and failing, the lender may agree to take the deed in lieu. Meanwhile – sending in your keys accomplishes nothing except leaving you a set of keys short for your house.