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Well I’ll just send the keys in then- the bank can have the house!

Posted by Minna Reid on Tuesday, November 29th, 2011 at 1:28pm.


housekey_397Well I’ll just send the keys in then- the bank can have the house!

Just wait a minute there! Unfortunately it’s just not that easy. Despite popular belief that you can just slip your keys in an envelope, mail them to your lender and then walk away from your house- it simply doesn’t work that way.

Giving the house to the bank  - known as a deed in lieu of foreclosure, involves a process and the lender does not have to agree to a deed in lieu. You can call the lender and discuss the deed in lieu and they will tell you what the process is and you can apply. However a deed in lieu is usually not a possibility for you:

  • If you have more than one lien against your property
  • Until you have attempted a short sale

Most lenders will force you to consider alternative solutions before accepting a deed in lieu, and will want to see your house listed as a short sale for a period of time before accepting the deed in lieu.

After going through their application process, and/or attempting a loan mod or short sale and failing, the lender may agree to take the deed in lieu.

Meanwhile - sending in your keys accomplishes nothing except leaving you a set of keys short for your house.

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Minna Reid, REALTOR®
CG Real Estate - Southington, CT 
Voice or Text: 860.416.1255
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Minna Reid  is a  CT Licensed Real Estate Broker Associate with CG Real Estate, specializing in short sales, serving  the Central CT including, but not limited to; Avon, Berlin, Bristol, Cheshire, Cromwell, Farmington, Glastonbury, Hamden, Meriden, Middlefield, Middletown, Newington, New Britain, North Branford, North Haven, Plainville, Portland, Prospect, Rocky Hill, Southington, Wallingford, West Hartford, Wethersfield and Wolcott. 

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2 Responses to "Well I’ll just send the keys in then- the bank can have the house!"

Will I still owe the difference after my Connecticut short sale? « Connecticut Short Sale Blog wrote:
[...]of your property. Many people mistakenly believe that letting the home foreclose, walking away or simply sending in the keys absolves them of their responsibility for their mortgage – however this is absolutely not the[...]

Posted on Friday, May 4th, 2012 at 8:11am.

A Connecticut HSBC Short Sale Success « Connecticut Short Sale Blog wrote:
[...]home had just expired unsold. To add insult to injury, this agent then told her to give up, go do a deed-in-lieu and even bought all her home furnishings at a[...]

Posted on Monday, October 1st, 2012 at 11:57am.


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