How to Get Rid of a Current Mortgage

Aggressively trying to get rid of your mortgage while the payments are still current gives you some flexibility. Without the pressure of a looming foreclosure you have time to consider all of your options, including voluntarily surrendering the house to your bank or mortgage company. The good thing is that you don't have to be behind in your payments to talk with your mortgage company about a solution.

Instructions

1

Sell your house. This is obviously the best way to get rid of your mortgage, but go on to the next step if a sluggish real estate market or some other reason prevents this option.

2

Ask your lender or mortgage company to consider a deed in lieu of foreclosure. This strategy, which is also called a voluntary foreclosure, allows you to surrender your house to your bank or mortgage company. The process is simple although there is a lot of paperwork involved. The bank agrees to take complete ownership of the house and mortgage and you get nothing. The bank also relieves you of any further responsibility for paying the mortgage.

3

Ask your lender for permission to engage in a so-called short sale. Short sales allow you to sell your home for less than what you owe on the mortgage. It's a viable sales strategy for homeowners whose property has lost value because of a recession or other reasons. Homeowners in this situation are said to be "under water" on their mortgage, making it sometimes impossible to sell their homes. In a short sale lenders have the option of waiving any remaining balance on the mortgage, allowing you to freely walk away. Or the lender can come after you for the deficiency balance.