Updated: Jul 14, 2021
When the time gets tough, the property owners often look to sell their properties. The reason for selling the home varies for every owner. The owners of properties in distress often ask the question, “Can I sell my house back to the bank?” The simple answer is “No, not every time.” Usually, the bank does not buy the properties. However, you can sell your house back to the bank to avoid foreclosure. It can happen through a voluntary process which is known as “deed in lieu of foreclosure.” With this, the owner transfers every right to the bank. The owners who cannot afford to keep their property anymore choose this way.
It benefits the owner in saving the property from being foreclosed. The bank buys the property and cancels the remaining balance. The owner moves with no responsibility or payable mortgage. However, it is not as easy as it looks.
You need to put your house on the market to give the bank a positive signal that you are doing everything to escape the mortgage. Keep on checking your mortgage statement; otherwise, the bank will not consider your request. Then, discuss the matter with the mortgage loan officer. After that, write a letter to the mortgagor and describe everything you discussed with the loan officer. It would be best to put continuous efforts into making a solid case for a deed in lieu of foreclosure, which is not an easy task. Moreover, it takes a lot of documentation, meetings, and time to complete a sale.
In comparison, a direct cash buyer offers an instant purchase and closes the deal. You do not need to run behind anyone. Just contact a reliable cash buyer through honest reviews 4 you and quickly sell your property.