How does deed in lieu process work?

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Icon Mini Profile motomom716





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Post Posted: Wed Apr 25, 2007 6:45 am    Post subject: How does deed in lieu process work?
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We live in Kentucky and we are two months behind on our mortgage payments and two years behind on property taxes. Can someone explain the deed in lieu process?
Icon Mini Profile colin
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Post Posted: Wed Apr 25, 2007 11:04 am    Post subject:
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Hi Motomom,

I have read your previous post about your mortgage sold to Countrywide and then again bought back by Wilmington Finance.

On 19th you said that Wilmington is thinking to allow a new payment plan, what happened to that. Are they asking for a deed in lieu?

In deed-in-lieu of foreclosure, they will take over your house instead of foreclosing. And the balance on the mortgage won't have to be paid. But you will lose your house. Read more about deed in lieu from this page: http://www.mortgagefit.com/deed-lieu.html

If you do not want to lose the house then talk about other repayment plans which you would be able to afford instead of a deed in lieu.

Let me know what Wilmington said about setting a new payment plan.

Colin
Icon Mini Profile motomom716





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Post Posted: Wed Apr 25, 2007 12:08 pm    Post subject: Deed in lieu
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Hello Colin,

Countrywide did not provide Wilmington with the payment plan in place so Wilmington is requesting that we provide a hardship letter, tax returns, pay stubs, bank statements and a monthly expense list. I am just trying to explore all options in case we are not able to come up with large payments. The loan officer with Wilmington did say that normally half the delinquency is due upon starting a payment plan. Our goal however is to keep our house if at all possible.

motomom716
Icon Mini Profile colin
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Post Posted: Wed Apr 25, 2007 12:24 pm    Post subject:
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Sometimes it is also possible that all the back dues are added on to the mortgage balance and a new extended repayment plan set up in which you do not have to pay the defaulted dues at the time repayment plan starts. It is called as mortgage modification.

You should inquire with them if that would be possible. Also read through this page about these different loss mitigation plans as they are called which are possible. And you should discuss if it would be possible to be accepted in your situation - http://www.mortgagefit.com/loss-mitigation.html

Let me know what happens.

Colin
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Post Posted: Wed Apr 25, 2007 12:43 pm    Post subject:
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Yes Motomom716, you should try to make them agree to a payment plan which you would be able to afford in this difficult financial situation you are in with your fiance out of job.

You can also consult ACORN Housing's mortgage delinquency counselors or other foreclosure prevention counseling agencies in your region to convince Wilmington on a new repayment plan which you would be able to afford.

Wilmington I expect would consider your situation and develop a plan in accordance with it.

Thanks
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Icon Mini Profile miller_st
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Post Posted: Wed Apr 25, 2007 2:22 pm    Post subject:
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ACORN has a Foreclosure Assistance Program (FAP) in which interest rates can be reduced so that you can afford the payments. One criterion is when someone has a reduction in income due to loss of employment.

It can be helpful for you, have a look at this page for details of this program: http://acornhousing.org/TEXT/fap.php

Also call at this number ((888) 409-3557) to know how long it will take to start the program if you are found eligible and if your lender (Wilmington) could be asked to wait until the program approval comes through.

Miller
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Post Posted: Thu Apr 26, 2007 2:14 am    Post subject: RE: Credit counseling
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Hi Motomom,

You should try to contact a credit counseling agency. They can help you to analyze your financial situation and develop plans regarding the strategies you should follow and how you should negotiate with the lender for an alternative repayment plan. You can look into http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm for a HUD approved housing counselor.

Take Care

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Post Posted: Mon May 07, 2007 1:21 pm    Post subject: hardship letter
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can anyone provide me with a sample hardship letter ?
Icon Mini Profile Niicss
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Post Posted: Mon May 07, 2007 2:12 pm    Post subject:
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Hi Burke,

The letter needs to give details why you are not able to make the payments. Along with the letter lender can ask you to submit pay stubs, tax records and other financial statements (like last 2 bank statements).

Quote:



Sample Hardship Letter



Date


This letter is a request for a short sale (letter can also be for a loan workout, depending the situation you are in) of my home located at "YOUR ADDRESS".

I had been working for "COMPANY NAME" for the last ten years when this October work began to slow down. Company started to cut back on my hours which eventually caused me to start falling behind on my bills. I earnestly tried to look for other work but did not have any success with it. This February I was laid off making it impossible for me to keep up on my mortgage.

All the bills kept piling up & I had no way to take care of them. I did find some temporary job that kept me afloat for a little while. I have just recently found another job but the pay is substantially less than what I was making at "COMPANY NAME".

Since I have fallen so far behind, there is no way for me to continue the payments. I am expecting that the house will get sold and thus would be able to avoid foreclosure & pay back as much as possible. It would also help me save my credit.

Thank you for reviewing my request.

Sincerely,
"YOUR NAME"




Icon Mini Profile sagarthakar
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Post Posted: Thu May 17, 2007 1:22 am    Post subject: reply
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Hi Colin,

Great information thanks for sharing with us
Icon Mini Profile colin
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Post Posted: Thu May 17, 2007 1:19 pm    Post subject:
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I try to share as my knowledge as I have & help out people. It is good to know that you found the information useful. Smile

Colin
Icon Mini Profile motomom716





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Post Posted: Fri May 18, 2007 12:24 pm    Post subject: Update
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I just want to thank Miller, Caron, Colin, blue and Ken Stampe for all their moral support and valuable information. We have been able to work out a payment plan with Wilmington Finance and hopefully the future is looking brighter. No one knows just how quick you can get behind or even lose your home. Thanks again.
Icon Mini Profile colin
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Post Posted: Fri May 18, 2007 12:38 pm    Post subject:
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Good news Motomom, it really feels good that foreclosure was avoided. Now you need to somehow follow the plan that has been set and hopefully things will be much better than what they are right now.

Keep us posted on how things go. And knock us anytime if you have any doubts.

Colin
Icon Mini Profile miller_st
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Post Posted: Fri May 18, 2007 5:18 pm    Post subject:
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We are always there to help you and wish that your situation improves. Smile

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Post Posted: Fri May 18, 2007 5:26 pm    Post subject:
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Mortgagefit community is always with you Motomom.

I am confident you will be able to continue this repayment plan.

You face any other problem in future, let us know. We will try our best to provide you with a solution.
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