What would be a reason why a person would give property back to the bank?

Answer by  Roland27 (16334)

Defaulting on Loans. If you default on the loans for things financed by the bank they can take it back and sell it to pay your debts.

Answer by  tamarawilhite (17883)

If someone gives a deed in lieu of foreclosure, giving the house back to the bank, they will have to pay the debt but not additional foreclosure fees.

Answer by  technogeek (6640)

Typically, when a person gives their property back to the bank, it is done in an effort to avoid the embarrassment of having their property foreclosed or repossessed. If they voluntarily return the property to the bank, though it still goes down as a repossession or a foreclosure on their credit, they are not embarrassed in front of their neighbors.

Answer by  Siri (81)

If the person can not able to pay the loan installments, then it affects their credit rating. However, if the property is given back to bank who can offer forebearance agreement while the home is being marketed for sale, so there will be no late reporting on his/her credit.