What is better? a Deed in Lieu or a Foreclosure in California

bsmm · Joined: 02 Oct 2008 Posts: 1 1.53 Dollars($)

My husband lost a job, and after 1 year of dipping into our savings to stay a float - he got offered another job..out of state - we had our house on the market for 6 months with not a looker...we moved and put a renter in to help make the payment (about 1/2 of it) when our soft pay term came up we tried to refinance and found out we were 100k upside down and couldn't refinance w/out making up the difference - we ran out of money and went to the bank to ask for help - they told us to apply for a Deed in Lieu or try a short sale - we put it back on the market and lost our renter - applied for the deed in Lieu, the bank sent out a loss mitigator who told us to drop our price $200k to which we did and during the next six months procured 3 short sale offers to which we couldn't get the bank to call us back! We recieved a notice in the mail that the house had been foreclosed and sold on 8/18! then 2 weeks later we received our 1st call in 3 months from somebody in loss mitigation saying they had made a mistake and postponed the foreclosure so we could do a deed in lieu! They stated they had never received any information about our DIL and had nothing on file (we mailed, faxed, and refaxed at their request 3 times and they sent out their loss mitigator and someone from the bank to check on the house conditions) and no record of anything being done. They are now asking if we would like to go thru the process of a DIL????My question is....at this point...is it worth it to do this all over again?

smithsussane · Posted: Thu Oct 02, 2008 9:32 pm Post subject:

Hi Bsmm!

Welcome to Forums!

I feel that there has been some communication gap and the bank authorities did not receive your DIL request. If you are unable to pay and if the bank is offering a DIL now, I think you should accept it. If you don't, the house will go for a foreclosure. A foreclosure will affect your credit score more than a DIL.

Feel free to ask if you have further queries.

Sussane

Guest 0.10 Dollars($)

Yes, you should again apply for DIL otherwise the lender can foreclose the property.

Guest 0.10 Dollars($)

The bank sent out their own mitigator and their own appraiser -- so to say they have nothing on file??? and can't find any record of our request???

jameshogg · Posted: Tue Oct 14, 2008 11:13 pm Post subject:

Hi Sherri,

Welcome to forums.

Yes, the bank should have definitely kept its record updated but I think somehow they have misplaced the DIL request that you have sent. To be on the safe side you should sent another DIL request to the bank.

Thanks.

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