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Handing over the keys: when walking away from your home gets complicated
My cousin just told me he's thinking about handing his house back to the bank instead of foreclosure. Sounds simple, but I can't help imagining a messy scenario unfolding... like, what if there's hidden fine print or something?
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"Sounds simple, but I can't help imagining a messy scenario unfolding... like, what if there's hidden fine print or something?"
Yeah, it's rarely as straightforward as banks want you to think. A buddy of mine tried this "handing back the keys" thing a few years ago, and it turned into a bit of a headache. Turns out he was still on the hook for some debt because the bank sold the house for less than he owed. I'd definitely tell your cousin to get someone who knows contracts to look it over first - better safe than sorry, right?