I bought a home one year ago that has already depreciated. I am very unhappy with the area and want out of my home. Selling is out of the question. I would like to hand the house back to the bank. I also have two mortgages, one of which is home equity. What happens to that loan? Do I have any other options?

Hello m:

You can try a short sale. You can try to rent it. You can try to sell it on a land contract. You can try to rent it with an option to buy.

What happens to the loan?? The bank is going to sue you for the difference in what they sell the house for at auction and what you owe. The home equity lender is going to sue you too.

Is it really the area you don't like, or the fact that your home isn't worth what you paid for it, and your interest rate just bumped up a notch?

excon

Well in one year what has happened..

If you let the house go back you will end up still paying them 1000's of the difference of what it sells for and whatyou owe.

Buyers Remorse, everyone goes through it at least once in their lifetime. You are going to have to try to sell it, or get sue as previous poster mentioned. Selling would be your cheapest out. If the bank sells it at auction, highest bidder wins, which could still be 10's of thousands less than you owe on it.
I don't know how you feel about renting, but that would really help you out. You can most likely rent for what your mortgage payment is plus an additional 25% to cover other costs if you are in a good area for renters. If you decide to rent GET REFERENCES and check them out. You want a great tenant, that will last a long time.
Good Luck