Legal Question in Real Estate Law in Nebraska

Deed in lieu of foreclosure - my right, or the bank's option to allow?

I own an in investment property in Nebraska. It's a problem property, mostly because of bad luck with tenants (i.e. poor cash flow) and difficulty selling it(on the market for over eight months). I have not been late on payments. But I am financially distressed now, and may falter on payment any month now. I don't care about any equity (probably none left) in this house. I just want to walk away. So, my question: Do I have the right to do a ''deed in lieu'' with the bank, or is this something the bank must approve? Seems like the bank will not even consider it unless I've missed a payment, and I do not want to miss a payment just to find out the bank will still not cooperate. I just want to walk away. Please let me know what my options are. Thanks!

Asked on 6/05/08, 7:13 am

1 Answer from Attorneys

Duke Drouillard Drouillard Law, LLC

Re: Deed in lieu of foreclosure - my right, or the bank's option to allow?

Bank's option. You have a contractual obligation to pay the mortgage. That obligation is secured by the deed. Offering to give them the deed does not relieve you of your contractual obligation unless they agree to it in writing.

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Answered on 6/10/08, 4:28 pm

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