Real Estate Law
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I'm sorry to hear about your situation. Yes. This is called a "voluntary repossession", and in the real estate context it's also known as a "deed in lieu of foreclosure". Now the main problem is that the lender could take back possession and still sue for the balance owed (or at least the amount owed minus what it sells the home for). This is called a "deficiency". Lenders typically don't waive a right to seek a deficiency unless they determine that the voluntary repossession without a deficiency would be better than the added expense of getting it back, selling, legal fees and costs, etc...
It would be best to contact the lender and see if they would agree to a deed in lieu / voluntary repossession. Telling them that you're on the verge of bankruptcy would help, as bankruptcy would release most debts and the best they might get would be pennies on the dollar for the underlying debt.
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