Want to Return Deed to Lender Please Help?

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I wanted to know if anyone else is going through this and wanted some feedback. We have already refinanced once when we inherited the house from my fiance’s mother, and then we did a loan re modification a year after that because we fell behind and the payments were still so high. My fiance was recently laid off and moved on to another job in trucking. I am still looking for a job myself, and have had no luck. In the meantime, we have fallen behind on our payments and want to work something out with the mortgage lender before a foreclosure is filed.

The mortgage company is called Ocwen and bought the mortgage to this house without our knowledge after we refinanced. From what I’ve seen and read, they are notorious for forcing people who cannot otherwise afford to keep a home, eventually setting them up for failure.

They sent us a list of options as they did before. We decided to turn over the house and give them the deed and walk away, stating there was no way we could re modify because we keep falling behind. It will only be a matter of time before we fall behind yet again. We are also trying to avoid bankruptcy. It will be a last resort if anything.

They are forcing us to keep the house and re modify. How can do this when we have shown them proof we can’t afford to do this. They state they can do whatever they want. They require that we both be jobless and destitute in order to qualify to walk away from the house. Just because one of us is working, doesn’t mean we can afford the house.

One lawyer tells us we are at their mercy, another lawyer tells us we can fight it, another lawyer says we have no choice but to file bankruptcy. I’ll be calling a few more lawyers to get their opinion.

I guess I have a few questions not just one. Has anyone gone through this and what did you do? What options do we have? Can the mortgage company do what they are saying they can do? If we walk away from the home, about how much time to we have to move out?

We have a disabled son and have heard that they cannot evict you from a home when there is a disbled or senior person living in the home. Is this so?

I’d appreciate any feedback. I’m running out of time, and trying to resolve this issue as soon as possible.

Thank you.

  1. Reply
    May 1, 2011 at 4:59 am

    Your mortgagee (lender) does not have to accept a deed in lieu of foreclosure. In doing so they loose their rights to seek a deficiency judgment. However, they can’t force you to modify the loan. Their only recourse is to file foreclosure. After foreclosure is filed, try a short sale. A disabled son will not prevent you from being evicted.


  2. Reply
    May 1, 2011 at 5:28 am

    Yes you have a long, disjointed post
    You need to seek paid, professional advice from an attorney in your area experienced in these matters
    You are NOT the victim you portray
    You freely entered into a contract which is valid and binding upon you and lender, no one MADE you do it, and then when you did Not fulfill your half of the contract, they did a loan modification for you.
    Bankruptcy or foreclosure could change your legal obligations, as could loan modification.
    Having a disabled son does not mean you avoid foreclosure and can live rent-free in some one else’s property.
    If there is only one mortgage and this has been your primary residence, your lender has no other recourse than taking your home, they can’t get a deficiency judgment against you no matter how much money they loaned you.

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