An option to surrender a house after a foreclosure action may be a deed in lieu of foreclosure, which is a way to surrender your house, in New Jersey. This is the conveyance of the property to the mortgage company, without the need to complete the foreclosure action and sheriff’s sale. Although this option will likely save the mortgage company money, typically, in my experience, the banks create great difficulty in consummating the deal.
It may be possible for the mortgage company to provide a payment to the New Jersey homeowner, as an incentive to sign over the deed and vacate the property. Another benefit may be to remove your name from the title of the house on an expedited basis. On occasion, the foreclosure process make take years, after the owner has moved on with their life.
A burden of a deed in lieu of foreclosure, may be the time and frustration of completing the deal, which may never be accomplished. Another burden is that a homeowner must vacate the premises after signing over the deed, instead of residing in the property, mortgage free, for the entire foreclosure process.
You may contact Robert Manchel, the foreclosure resolution attorney in New Jersey, at 866-503-5655.