How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Anne Your Own Question
Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2342
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
Type Your Tax Question Here...
Anne is online now
A new question is answered every 9 seconds

I am unable to sell my house. It is worth less then what I

Resolved Question:

I am unable to sell my house. It is worth less then what I owe on the mortgage.
I need to do a "deed in lieu of", since I do not have the money to do a short sale.
I cantacted the bank, Bank of America, but they never return my calls.
Probably because I still pay on time.
What can I do?
I appreciate your help!!
Submitted: 6 years ago.
Category: Tax
Expert:  Anne replied 6 years ago.

Thank you for using justanswer. What you're looking for is "Deed in Lieu of Foreclosure", which means you are at risk for losing your home to foreclosure for failure to pay the mortgage. Since you are still making your payments that could easily explain why the bank has not returned your call.

The first step in getting a deed in lieu of foreclosure is that your home must be at risk for being foreclosed on (or the foreclosure process has already started)

The deed in lieu of foreclosure offers advantages to both the lender and the borrower. The main advantage to the borrower is that it immediately releases him from all or most of the indebtedness associated with the loan in default.

If you have been unable to make your monthly payments and your home has been on the market without success of sale, this form of foreclosure may be what is necessary to get you back on track. Deed in lieu allows you, the borrower, to transfer your property to your lender voluntarily and your debt is often forgiven. This procedure will not save your home, but it will help the possibility of you getting another loan in the future. It will also help prevent the lengthy and costly procedure of a foreclosure. It is a negative strike on your credit, but not as bad as a foreclosure.


Please see below for information re: Foreclosures


Publication 4681 (2009), Canceled Debts, Foreclosures, Repossessions, and Abandonments


I hope this helps.


Anne and 2 other Tax Specialists are ready to help you

Related Tax Questions