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Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 33033
Experience:  30 years of real estate practice experience.
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I would like to give back my house to the lender, is it

Customer Question

I would like to give back my house to the lender, is it possible, to handover the keys without too many repercussion as I have put my house on the market for two months and there are no buyers
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Windermere, florida
JA: Has anything been filed or reported?
Customer: no. we are current with our payment, but it is becoming a burden to keep the house
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 8 months ago.
Category: Real Estate Law
Expert:  Loren replied 8 months ago.

Good afternoon. I am Loren, a Florida licensed attorney, and I look forward to assisting you.

Expert:  Loren replied 8 months ago.

By the way, as a member, you can switch to a phone call for free to talk through the issue. Let me know if you would like to talk on phone or continue online.

Expert:  Loren replied 8 months ago.

You have three basic options.

First, you can try to sell the unit and work out a short sale. That is where the unit would sell for less than is owed and the lender would agree to release the note and mortgage in return for the net proceeds of the sale.

Next, and this is what you are referring to in your question, is a deed in lieu of foreclosure. That is a negotiated agreement where you voluntarily deed the property to the lender without the lender having to go through the foreclosure process. As part of the negotiation, the lender would release the not and mortgage. You might also be able to get them to stipulate that the value of the property is the remaining balance of the mortgage. That way, you would not get a 1099 for the amount debt forgiveness.

The last option is to just walk away. It is the riskiest because you have no negotiated terms and the lender could have options regarding deficiency.
It is a good idea to have an attorney represent you. Lenders are notorious for giving unrepresented borrowers the run-around. A general business or debtor/creditor attorney could help you.

As for fees, there is no set rate and it should be negotiated upfront. The fees will be hourly and the cost will depend on the amount of time. Of course, the hourly rate for a large firm will be more than a storefront neighborhood attorney.

If you need assistance finding local counsel try Martindale Hubble (site rules prohibit us from referring specific attorneys) . Many attorneys themselves use this site to locate attorneys outside their jurisdiction or expertise:

It is a huge worldwide database searchable by location and specialty. The attorneys are all peer rated. So, they represent the top of the profession.

Expert:  Loren replied 8 months ago.

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