How Do I Get out of a Mortgage?

There are many ways to get out of a mortgage:

• Reveal Your Intent to Abandon the Property to Your Bank. If you make your bank aware that you intend to abandon your property, you might receive a settlement for a "deed in lieu" and the return of the property to the lender. A deed in lieu allows your property to revert to the lender, who can then sell the property and recuperate a portion of the unpaid mortgage. In return, you may be forgiven for the entire amount of the unpaid mortgage.

• Conduct a Short Sale. You can ask your bank to accept less than the full outstanding value of the loan, which allows you to have more control over the property transaction.

• Market Your Property for Rent. You can convert your property to a rental and become a landlord, receiving monthly income from rent. However, this approach most often only works well for properties that are in high-demand areas in which rent prices will be equal or higher than your required monthly mortgage payments.

• Find a Buyer to Purchase Your Property. A buyer might offer you a discounted purchasing price for the property. The main benefit of this option is that the processing time necessary to transfer your property is brief (usually a purchase will occur within the span of one to two weeks).

• Apply For a Foreclosure. You will be able to stay at your property until a court judgement is made regarding the property. However, you will face great uncertainty during the deliberation period.

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The main goal for getting out from a mortgage is to reduce your costs and optimize the processing time. Be sure to weigh the benefits and drawbacks before making this decision.