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campbell_writing · Joined: 15 Dec 2009 Posts: 3 1.98 Dollars($)

My husband and I tried to do a modification, but the payments were still out of our reach. We understand we have to give up the house, but would like to avoid a foreclosure. When I contacted the bank regarding a Deed in Lieu, they informed me that I had to have the house up for sale for 3 months as a short sale and that they would demand the difference between what it sold for and what was owed, which at this time works out to be about $200k.

After reading the forum about the steps for Deed in Lieu and the other information, I have to wonder if the bank can force me to do a short sale? How can I get them to just take back the house in a Deed in Lieu. I'm saving them the trouble of foreclosure, why are they being so difficult?

jenkin7 · Posted: Wed Dec 16, 2009 12:21 am Post subject:

Hi Campbell,

It depends on your individual lender if they will allow you to do the deed in lieu (DIL) or will want you to first try and short sell the property. Most of the lenders would want you to list the house in the market for short sale for at least 90 days before they accept the DIL. If there remains any deficiency from the short sale or the DIL, you will be responsible to pay it off. However, if there are anti-deficiency laws in your state which applies to your situation, the lender will not be able to come after you for the deficiency.

cupplesjonathan71 · Joined: 04 Nov 2009 Posts: 82 0.00 Dollars($)

actually bank is not forcing you. you are not in a position to continue with mortgage. they have done modification as well for you.

campbell_writing · Joined: 15 Dec 2009 Posts: 3 1.98 Dollars($)

Unfortunately, cupplesjonathan71, this is not helpful. I know they've done the modification, and I know that the payments are still out of reach for my husband and I. Their words to me when I began the process was that they didn't care how the rest of my bills were paid, if my family had food, or anything else as long as they had their money.

Any suggestions for options for me would be appreciated. I know what the bank has done. I need to know what i can do now.

savior70 · Posted: Fri Dec 18, 2009 7:16 am Post subject:

Hi,

In case you want to keep the house, you can file Chapter 13. A repayment plan will be set up under the supervision of the bankruptcy court. You can then make payments as per the repayment plan and pay off the debts in 3-5 years time. If you do not qualify for chapter 13, you can file Chapter 7 and have your debts discharged through bankruptcy.

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Can the bank force me to do a short sale?