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

Guest

I have filled out papers for a deed in leiu. I was told it would take 90 days for them to get it filed, I asked if I needed to make the association dues & they said everything was included and not to pay dues. I just want to verify this.

smithsussane · Posted: Mon Dec 07, 2009 12:04 am Post subject:

Hi joan!

Welcome to forums!

As far as I know, you'll be responsible for the homeowner association dues until your property is sold off at the auction. It is better to pay off the dues or else the association may place a lien on the property. However, laws may vary from state to state. You should contact an attorney and take his opinion in this regard.

Feel free to ask if you've further queries.

Sussane

Guest

i lost two jobs i held for years my husband is not making enough money
house cannot be sold for what is rest of our principal
if we do deed in lieu foreclosure, do we still have to pay rest of our loans

Niicss · Posted: Fri Feb 05, 2010 2:38 am Post subject:

Your query has been replied to in the given page:
http://www.mortgagefit.com/deed-lieu-41.html#148681

Take a look at it. I hope it will help you.

Guest

i have primary mortgage and a home line of credit both with wells fargo for a house i bought in 05. during this time i've lived and rented the house out. my job is an hour and a half away, and i can't afford to stay in this house any longer. i never refi both loans, so i never took any money out. if wf approves my application for deed in lieu of foreclosure, will they forgive both the primary mortgage and the line of credit? or only the primary. thanks.

smithsussane · Posted: Mon Mar 01, 2010 11:48 pm Post subject:

Hi Cmron!

Welcome to forums!

If your lender accepts your request for a deed in lieu, then he would forgive the deficient amount resulting from the first mortgage. However, you would be liable for paying the second mortgage balance to the lender. I don't think the lender will forgive the line of credit.

Feel free to ask if you've further queries.

Sussane

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