When you are facing foreclosure and do not see a way to keep your home, you may want to look at voluntarily forfeiting the loan. This means that you will walk away from your home and your mortgage by signing over all of your rights to the property to the lender. In some cases, it may not even have a negative effect on your credit score. To do this, you will need to know how to request a "deed in lieu of foreclosure."
Contact a real estate attorney in your area who can help you work with your mortgage company. To find one in your area, check local.com.
Tell the attorney that you want to forfeit the mortgage by way of a "deed in lieu of foreclosure." Supply him or her with any information about your mortgage and the amount of arrears you are in.
Allow the attorney to take over the communication with your lender. The attorney can negotiate for you so that you do not end up paying extra fees or even having a foreclosure on your credit report.
Follow through with any signed agreements between yourself, your attorney and the mortgage lender. Be prepared to make other living arrangements, as "deed in lieu" proceedings are much quicker than actual foreclosure.
Follow up with your attorney to verify that the agreement is held on your credit report and not reported as a foreclosure.