What are the steps in deed in lieu of foreclosure?

Guest

I have a second home that was under construction. The home has lost about 60% of its value and the lender is going to send the home into default do to the fact there has been no work complete on the home, but all payments are current. Will they take the keys back on a home that is 90% complete?

Guest

if your home is going to foreclose and your attempts to deed in lieu of foreclosure are unsuccessful is it smart to foreclose and then file bankrupcy? help....

smithsussane · Posted: Mon Aug 31, 2009 12:45 am Post subject:

Hi!

Welcome to forums!

To Confused,

The lender can foreclose the property and take back the keys if you've defaulted the loan. If you're current on your payments, the lender will not be able to foreclose the property.

To Alice,

If your lender has not accepted your request for a deed in lieu, then you may directly file a bankruptcy. You do not need to let the lender foreclose the property first. However, I would suggest you to apply for a short sale first and check if the lender agrees to it. In this process, you can sell off the property at a lower price but you would responsible for the deficient amount resulting from the sale of the property.

Feel free to ask if you've further queries.

Sussane

Guest

I bought my house in 2006 and my wife and I could barely afford it. First house. In late 2008 my wife went from 40 hrs to 10 hrs a week and my Salary got cut and I got moved to hourly. We contacted the mortgage company and asked them if we could restructure the loan but they said my debt to income ratio was too high to redo anything.

We havent been able to make payments for quite some time now and the lender has hired a lawyer to send us the letter of intent to foreclose. Our incomes still arent quite high enough to pay the loan plus our outstanding student loans. This is the first time ive heard of DIL and was wondering if this is even an option for us?

The other thing to note is the house we bought has some problems and needs fixed up fairly badly. It probably will not sell for the purchase price especially with the housing market being so depressed in our area. Does this affect the lenders willingness to do a DIL?

jameshogg · Posted: Tue Sep 22, 2009 11:32 pm Post subject:

Hi Rams,

A deed in lieu is a good idea to avoid foreclosure. In the process of deed in lieu of foreclosure, you will have to give away your property to the lender who would sell it off in order to recover his dues. The lender will not be able to recover the loan amount in full due to the present market situation. However, you will not be liable for paying the deficient amount. The lender would forgive it. If the property deed has some issues, then it would be difficult for the lender to sell off the property. It would be better if you could resolve the issues regarding the property deed and then apply for a deed in lieu.

Thanks

Guest

I lost my job of 32 years in june 2008. I got another job which requires me to take call. I had to leave my home 2hrs away and rent an apartment close to work. I decided to do a deed in lieu, but now my home is growing mold. Should I just do a foreclosre?

smithsussane · Posted: Fri Nov 20, 2009 10:04 pm Post subject:

Hi curves!

Welcome to forums!

I would suggest you to contact your lender and apply for a deed in lieu of foreclosure. Try and negotiate so that the lender agrees to it. If the lender does not agree to it, then you can let the property go into foreclosure.

Sussane

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