What are the qualifications for a deed in lieu of foreclosure?
If you cannot sell the house for what you owe, chances are good that the bank is not going to accept a deed in lieu of foreclosure. Banks tend to be more willing to look at this option if they have a chance of being able to sell the house without losing money on it. A short sale might be an option but you will have to show financial hardship and banks tend to work very slowly on short sales. Any chance you could sell it for less than what you owe and make up the difference from your savings? Not ideal, I know but having a foreclosure on your credit will affect your financial future for a long time.
