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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I live in Virginia, but I bought a house in Tennessee to retire

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I live in Virginia, but I bought a house in Tennessee to retire in. The game plan was to sell my house in Virginia upon retirement, and move into the house in Tn. As it turns out plans changed, I could not sell the house in Va. and I have not moved into the Tn house. Instead, I got married, moved out of my house in Va, and moved in with my new wife in a house she ownes. Now retired, my retirement check does not cover the bills and I have exhausted my retirement account. I cannot afford to keep the house in Tn. which has no equity. It will not sell due to econemy. I have it rented through a property management company, but that does not cover the mortgage, and when it is not rented, I have to scratch for money to make ends meet.
I contacted Bankof America (lean holder for Tn house) and told them of extenuating circumstances. They have put me through the loan modification to lower the interest rate so to possibly lower my pmts. What I am hearing from them is that I don't occupy the house and modification is not possible through the guidelines privided.
I now have to make a choice of paying down my credit cards (above $50,000) or paying the mortgage on the house in Tn.
I have not missed a payment in since I bought the Tn house 4 yrs ago, but I think I will stop paying them and let them have the house back.
Question: Can I simply give the house back to Bank of America and not file bankruptcy?
Hello,

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by JustAnswer.com and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

If you do not pay your mortgage, the lender may foreclose. cap Tennessee does not have an anti-deficiency statute. Deficiency judgments resulting from foreclosure can be obtained in Tennessee.

A lender can take action to collect on a deficiency judgment, including garnishing bank accounts and other assets.

One possible solution is called a "deed in lieu of foreclosure".

This procedure allows you to transfer your property voluntarily to your lender or Mortgage Company in exchange for forgiveness of your indebtedness. Lenders are typically more likely in enter into a deed in lieu when the homeowner is at least 90 days late in payments.

If you would like additional details concerning my answer, please click REPLY and I will be happy to respond. Do not click relist as it will delay my response.
Customer: replied 6 years ago.
This is very helpful. I would like a bit more detail on "deed in lieu of foreclosure". Can I start this procedure (following 90 days late in payment) without a lawyer? The bank has not been very sensitive to my situation and I really don't trust their responses, they do not like to put things in writing. Also, would I need a Tennessee lawyer or can a local lawyer here in XXXXX XXXXXdle it. thanks you for your expertise.
This is very helpful. I would like a bit more detail on "deed in lieu of foreclosure". Can I start this procedure (following 90 days late in payment) without a lawyer?
Yes. Eventually the lender will contact you if you do not make payments
The bank has not been very sensitive to my situation and I really don't trust their responses, they do not like to put things in writing.
They are nonresponsive because you are up to date on the payments

Also, would I need a Tennessee lawyer or can a local lawyer here in XXXXX XXXXXdle it. thanks you for your expertise.
a local attorney in either state can assist you

Ellen and 3 other Bankruptcy Law Specialists are ready to help you

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