If you can't pay your mortgage or car lease can you bring keys?

[spectre71]

If don't have money to pay your mortgage or car lease ?
Can you Simple bring keys to the bank ?
I mean you got to estimate your case If you know you gona fail anyways dont pay them nothing just enjoy the the money while you have it.
Do you know any one who returned keys just back?

There is a legal procedure in that and you can't just go to the bank, return the keys, get a thank you in return, and get out of there. If the things you are returning are of less value than they initially were when you got them, you will need to pay the money that you owe to the bank and if you refuse to do that, expect the cops to visit you because they will report you for your behaviour and the debt that you are refusing to pay.

So, one should only take a home or car loan when they know they can pay the loan along with the interest set by the bank because if you fail to do that in the future, you might have to face legal consequences for that.

What country are you in? Here in the US I can walk in a surrender a car and toss them the keys. C'est la vi.

Here in the US they are never going to "send the cops". It's a civil matter.

If you are in the US, you shouldn't be offering advice.

[Casalania]

I don't know in other countries, but from where I came from, if we can pay our car lease or mortgage for 3 months straight, the bank will take our car or house, but you need to remember that we already paid some of the installment, and we will not get that money back, so we definitely loss some money. And not only that will also reduce our credit score, and it will make us difficult to get another loan, mortgages, or car lease in the future.

And also the Bank will terrorize us with their collectors staff from the first month we miss our payment.

I don't understand. You mentioned that if someone can pay their car lease or mortgage for three consecutive months, their car can still be taken away. Is that really true, even if they can afford it? This seems like something that should be considered illegal. Or did you make a typo?

[icalical]

I don't know in other countries, but from where I came from, if we can pay our car lease or mortgage for 3 months straight, the bank will take our car or house, but you need to remember that we already paid some of the installment, and we will not get that money back, so we definitely loss some money. And not only that will also reduce our credit score, and it will make us difficult to get another loan, mortgages, or car lease in the future.

And also the Bank will terrorize us with their collectors staff from the first month we miss our payment.

I don't understand. You mentioned that if someone can pay their car lease or mortgage for three consecutive months, their car can still be taken away. Is that really true, even if they can afford it? This seems like something that should be considered illegal. Or did you make a typo?

my bad, its indeed a type, it should be 'if we cannot pay our car lease for 3 months straight'. thanks for the correction.

[Fortify]

If don't have money to pay your mortgage or car lease ?
Can you Simple bring keys to the bank ?
I mean you got to estimate your case If you know you gona fail anyways dont pay them nothing just enjoy the the money while you have it.
Do you know any one who returned keys just back?

Why are you asking us? There are so many different terms and agreements dreamed up by finance companies out there it's impossible to answer. You have to read the specific contract that you signed up and agreed to when taking out the car lease. Mortgages are also vastly different in scale but ultimately are likely to work the same way. There is often a gap between the amount that you agreed to pay overall and the amount that the car/house would be worth when you decide to abandon it, if that is even an option, then you would have to pay the difference. Failing in the extreme case of losing your house under mortgage would likely be the worst case scenario where you have declared bankruptcy and it has to be sold to cover outstanding debts.

[STT]

A ton of people think if the car is taken back then the loan is done but thats not it.   In effect you defaulted and are a bad credit risk and the bank could do a number of things to recover the debt.  In most countries you wont goto jail for it unless fraud was involved in the application then it is possible [that is a criminal proceeding]. However for a house its quite probable you would be forced to declare bankruptcy.   Bankruptcy can end up with jail time also but so far as I know thats really only with malicious failure to pay, fraud.
  None of this is especially a theory, it happens fairly often if you read the newspapers its not so rare if you think how rough divorce proceedings get for example; google Boris Becker world class tennis player he just served a jail term for deceit in bankruptcy.    Bankruptcy is always a waking nightmare a real bad time, worst case some people I know couldn't get a job after that which is years long nightmare ending.

   For the car loan maybe you could get away with it to a limited extent but not really, depends on the amounts owed.   I guess most of the time the old car isnt worth so much at the point of default vs its sale price in recovery so you may just end up with awful credit ratings and tons of people have that problem.