Legal Question in Real Estate Law in Pennsylvania
Voluntary Return of Property to the Mortgage Company
Is there any way I can voluntarily stop paying my
mortgage and return the property to the mortgage company (I believe this may be called a voluntary conveyance)? Single owner, conventional mortgage, purchased in 1992 for $72,500. Values have dropped to $52,000-$55,000 max range and neighborhood is rapidly declining and quality of life and safety are now an issue. Mortgage was 5% down. I now owe approx. $53,000 and would need $57-$58 after realestate agent fees. Numerous houses in area for sale and are not selling. Two
homes have recently been boarded up. Any way I can get out of this bad situation. My home has already lost 24% of its value and I can't afford further losses. Employed full time, good credit history. HELP!
1 Answer from Attorneys
Re: Voluntary Return of Property to the Mortgage Company
In order to stop payment you must negotiate with your mortgage company. Ask them if you can give them the property in lieu of mortgage foreclosure.
If the only liens on the property are the original mortgage they may accept your offer. If there other judgements on record the Bank will not accept the offer unless the liens are paid off. Suggest you consult with legal counsel to handle the negotiations. If you stop paying the mortgage, late fees, court costs, attorney fees would be added the mortgage balance to obtain a future pay off. It would be much better to negotiate an amicable resolution. Remember if the
Bank forecloses and there is a deficiency in the amount owed the Bank can hold you responsible for the deficiency. With all the costs added to the foreclosure there is a guaranteed deficiency. Also a deed in lieu of mortgage foreclosure allows the Bank to control the property immediately with little loss of time and money. My advice is to contact the mortgage company immediately. Good luck.
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