Giving the bank a “deed in lieu” of filing foreclosure is an option. In addition to giving the bank the house you also want to be released from further payments. The advantage for you is you get out from under the loan payments. Of course the disadvantage is you are now homeless. The advantage for the bank is they save the cost of foreclosure. Their disadvantage – they probably will never get paid in full. As usual the bank will want a lot of documentation from you. To understand why imagine you are the bank employee dealing with a defaulting loan. The home owner ask you to take a deed in lieu of foreclosure. First when the bank owns the house are you or the bank employee going to be mowing the grass and keeping vandals out of an empty house. Not in your job description, so the bank hires a property manager at a cost to the bank. Next as a bank employee you have a boss who reviews your work to determine if you stay. get promoted, or fired. If you take the deed at a cost to the bank and a big loss when the property is sold, you banking career may be short. As the employee you protect yourself by getting financials from the homeowner.