Can I do a deed in lieu even though I have $10,000 in the bank? (Pennsylvania)

[Caliper]

I owe about $85,000 on my house, and there's no way I'd be able to sell it for that much. I don't have a job, so I have no income coming in, but I have about $10,000 in my bank account. (I'm very disciplined when it comes to saving money.

I would like to do a deed in lieu. I would have just called up my bank and asked them about it, but I'm scared that the conversation is going to go like this:

"I would like to apply for a deed in lieu."

"Ok, how much money do you have to your name?"

"About $10,000."

"Well, there's no way we're going to give you a deed in lieu, and by the way, now that we know that you have that money, we're going to come after you for it if you try to default."

I have a medical condition, so I'm going to need that money to pay for health care. My prospects of getting a job soon are slim. I'm going to be broke before too long if I keep paying the mortgage, so I might as well ditch the mortgage before it gets to that point.

Any advice?

[Evan Bedard]

"Well, there's no way we're going to give you a deed in lieu, and by the way, now that we know that you have that money, we're going to come after you for it if you try to default."
I have a medical condition, so I'm going to need that money to pay for health care. My prospects of getting a job soon are slim. I'm going to be broke before too long if I keep paying the mortgage, so I might as well ditch the mortgage before it gets to that point.

Welcome to the forum Caliper.

Personally I would not advise sending them any of your financial information or telling them anything about how much money you have in the bank to apply for a DIL. There is really no benefits on your behalf going through a DIL and it would not be wise sending them your financial info. Here is a great thread that helps explain the differences between a dIL, short sale, foreclosure and the consequences that come along with each event.

SS vs DIL vs FC Comparison

[Caliper]

Thanks for the reply.

I guess I want a deed in lieu because I would really rather just get rid of the house and be done with it so that it doesn't cause me any more stress. But maybe you're right; there's no logical reason why I should bother to do one.
Also, "(I'm very disciplined when it comes to saving money. " was supposed to have a smiley face at the end of it. Haha it sounds so arrogant without one.

[Evan Bedard]

Lol no need for a smiley face because there are so MANY people out there who have a very difficult time saving money.. You can have quite some time living in the property before foreclosure and this could be a good opportunity for you to continue saving money until you land another job. From there you should decide whether or not you want to continue walking away from the home or possibly apply for a loan mod to bring your account current and lower your monthly dues..