How can I get out from under a mortgage payment I cannot payif it’s not my primary residence?

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How can I get out from under a mortgage payment I cannot payif it’s not my primary residence?

I have a home out of state that is not my primary residence. I’ve had the house up for sale but no luck in selling. I’m trying to rent it but again not having any luck. The house is worth around $82,000 and I owe just under $74,000 on the mortgage – nothing is in default. Because of medical bills, legal bills, and a cut in pay, continually paying in full will get harder. I’m not looking to get anything out of the house. I tried the lender but they were no help. I’m worried about taxes and such (not my credit score) if it forecloses or a died in lieu.

Asked on January 22, 2012 under Real Estate Law, North Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

You cannot force a lender to take back the property and allow you out of the loan, or to otherwise let you out of the debt--it is voluntary on the part of the lender to do so, and they have the right to hold you to the mortgage's terms.

One option to consider is a Chapter 13 bankruptcy, since you write that you are not concerned about your credit score. A Chapter 13 will allow you to restructure your debt if and when it becomes insurmountable. Since it will also cut off your obligation to pay any balance on the mortgage (the lender will get the home, but then can't sue you for any more), that could be a way to deal with the situation.


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