[Tricia819]

I was just curious if anyone knows the consequences of signing their house over to the mortgage company? Is this different that just walking away from your house or is it the same thing? We're not behind or anything, I was just wondering.

[buehler740]

they will proably kick ya out and sell to the highest bidder

[OHGreat]

This is called Deed in Leiu and your credit will take a big hit. Other then that yes you can do it. Just make sure you have all debt forgiven from the mortgage company if you have to take this route. I hear this is the up an coming thing to do to get you out of the house in 60 days or so and mortgage companies are liking this idea over foreclosure as it doesn't cost them as much money.

[Zippyman]

If you're considering it, you need a "release" from the mortgage company for your financial obligation of the mortgage. If you don't get a "release", they can still come after you for any difference between the amount owed and what they get for the property at auction (which will likely be substantial), and your credit will still get dinged.

You can stay rent free - for the duration of the foreclosure period + the redemption period which typically is in the area of 18+ months if you don't sign the house over.

I went through a BK and a foreclosure nearly 10 years ago, and foolishly just gave the house back to the bank. My credit was ( and is still! ) dinged, and I missed out on a substantial amount of "free rent" that I really could have used to "set myself up" financially after BK because I didn't understand the law.

My advice, either get a release, or get the free rent, but don't sign it over without getting one or the other.

Call an attorney, and pay for an hour's consult. You'll be glad you did!