Surrender Rental or Deed-in-Lieu in 13?

[debtinohio]

I have a rental property that loses money each month and we no longer intend on keeping it and wish to surrender the property in our upcoming filing of a CH13.

My lawyer said to call the mortgage co. to do a deed-in-lieu preferably within 90 days of filing.

Isn't there a better way to just surrender or hand over the keys to a property in a 13? Is it my responsibility to arrange the deal? I have a renter in there and I would like to give her the proper notice as she has been excellent in the 2 years she's lived there (shes on a month-to-month lease now). I don't know if they will accept the deed-in-lieu offer or if it needs to go to foreclosure or what. I guess I figured it would be a no-brainer to surrender a property once we filed.

This is in Ohio and the lender is National City.

TIA!

[frogger]

My lawyer said to call the mortgage co. to do a deed-in-lieu preferably within 90 days of filing.

And that's exactly what you should do. There is no point in making the situation worse for the tenant if not necessary. You should contact the mortgage company and talk to them about how best to transfer the property and the tenant.

They may want the tenant, they may not. If it is a good tenant, it is probably in their best interest to keep the tenant instead of having a vacant property.

Talk to them and see how they want to handle it. If they don't want the tenant, then give the tenant notice.

And most importantly, don't forget that this situation is about your financial well being, not that of the tenant. Do what is best for your family.

[debtinohio]

Thanks Frogger...I'll contact them once we file.

Take care.