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Anyone walk away in New Jersey?

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by DannyBoy, Aug 5, 2009.

  1. DannyBoy

    DannyBoy LoanSafe Member

    This site is a great resource!
    I have a house that I can't afford, and don't want to keep post divorce.
    I have mortgage with Chase and Heloc with Chase, both done on a refinance in 2007.
    House could MAYBE sell in high 200's, but would require some fix-ups first.
    I owe a little over $300k on mortgage and $62k on HELOC.
    I would like to just give the keys over as soon as possible and walk.
    Has anyone done this in N.J.? I haven't been able to find any stories on the site.
    Any insight/experiences would be very helpful.
    Thanks!
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Hi Dannyboy welcome and thank you for joining.

    If you are behind on your payments and getting clost to foreclosure your lender may be will to offer you "cash for keys" to leave the house sooner. But this amount will only be about 1000-3000 to help you move and as a deposit for a new place...
  3. DannyBoy

    DannyBoy LoanSafe Member

    Thanks - I just missed my first payment, and it hasn't really shown up on their radar yet. Can my first contact with them be as direct as saying, "I'm leaving, there is NOTHING that will change my mind, here are the keys"?

    Do I need a lawyer to assist me in giving the house back?
  4. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    If you want to just let the house go into foreclosure it may be best to start saving up as much money as you can and just ride it out. A foreclosure can easily take up to six months and by then you should have quite a bit saved up...
  5. DannyBoy

    DannyBoy LoanSafe Member

    I don't want to stay there at all! The house is so depressing to me and my only reason to be there was to see my kids who are now across the country.
    It literally puts me into a serious depression every time I drive up to the house. Would the bank not appreciate a very switch handing over (though I'm sure they would rather have the money)?
  6. bittersweetme

    bittersweetme LoanSafe Member


    DannyBoy,

    I am so sad to hear your reasons for not wanting your house.... reading your post TRULY broke my heart. I am also from New Jersey. Well, I just wanted to tell you to keep your chin up ! I understand your feelings, I have been down the "D" road twice.
  7. DannyBoy

    DannyBoy LoanSafe Member

    Thanks for that. I have another place where I can stay - I don't want to see the old house again. I need the mortgage money to buy plane tickets every couple of weeks to see my kids. I just don't know how to give the house back. Literally put keys and a note in certified mail?
  8. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    Dannyboy I would call Chase and let them know that you are walking away from your property and have no intension of staying there. At that time you can probably just mail in the keys like you said because they will end up changing the locks sooner or later anyways..
  9. DannyBoy

    DannyBoy LoanSafe Member

    thanks - would I expect any kind of validation from them that they received keys? Should I ask if they want to do a walk-through or anything like that? I want it all to happen as quickly as possible, but also want it to be as proper as possible, if that makes sense. Really appreciate the input!
  10. Under_H20

    Under_H20 LoanSafe Member

    Trying to understand the options for myself also, so I'll pose this question in Danny's situation. If Danny mails the keys to Chase, isn't he still liable for the house? Until the deed is transferred back to Chase, isn't he responsible for anything that may happen to the house and in the house? Better to fully understand the consequences, right?
  11. Enough Already

    Enough Already LoanSafe Member

    Danny Boy and Under H20,
    Yes. Unfortunately the home owner is responsible for the home until it's been sold or foreclosed on and is no longer in your name.

    The idea of walking away is a good, but not as easy as it may seem. There can be many liabilities when walking away. Each of your should read the foreclosure laws for your state (they can be found on this site), and read, read, read this forum for more info. It's also strongly recommended that you discuss your specific situation with a real estate attorney, and come up with a plan.

    Walking away can be done, and is being done more and more often, but you need to educate yourself as much as possible, so you don't end up in a worse mess in the end.

    Good luck!

    EA
  12. wanttokeepit

    wanttokeepit LoanSafe Member

    Danny Boy;

    Foreclosure can take a loooong time in NJ nowadays. We are now 18 months behind and just started a trial payment plan for a loan mod. My lawyer told me I probably had another 3 months before a sale was scheduled, due to the new mediation rules that went in effect in NJ, that puts me close to two years without making a single payment. Consider renting this house at a below-market rate, hopefully you can find someone looking for a short-term rental, somebody else can benefit by paying a lower rent they would normally pay, you can save some money, and the house stays occupied and taken care of for the bank, until they get full possession of it. After foreclosure the bank is required to give the tenants at least 3 months to find a new place, they won't be thrown on the streets. just something to consider.
  13. Irish Gal

    Irish Gal LoanSafe Member

    I agree w/ Enough, wholeheartedly. DannyBoy, sorry to hear of your situation. You have come to the right place! I would just caution you to not make any hurried decisions out of pure emotion that might bite you later, as Enough has said. Study the Deed in Lieu/Walkaway thread, and NJ foreclosure law section for as much info, as possible. Many attys today will provide free (15/30 min) consults about homeowner issues. Find one experienced in NJ real estate/debt collection laws so you know all the scenarios that may play out in your specific situation. Each case is different, so you want to make sure whatever legal moves you make don't haunt you later $$$$, long after you thought the issue was a "done deal." Good luck. Keep us posted!

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