How does deed in lieu process work?

motomom716 · Joined: 18 Apr 2007 Posts: 14 7.13 Dollars($)

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?

colin · Posted: Wed Apr 25, 2007 11:04 am Post subject:

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

motomom716 · Joined: 18 Apr 2007 Posts: 14 7.13 Dollars($)

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

colin · Posted: Wed Apr 25, 2007 12:24 pm Post subject:

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

blue · Posted: Wed Apr 25, 2007 12:43 pm Post subject:

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
Blue

miller_st · Joined: 17 Jan 2007 Posts: 917 168.92 Dollars($)

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

sara · Posted: Thu Apr 26, 2007 2:14 am Post subject: RE: Credit counseling

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

Guest

can anyone provide me with a sample hardship letter ?

Niicss · Posted: Mon May 07, 2007 2:12 pm Post subject:

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).

sagarthakar · Joined: 15 May 2007 Posts: 71 26.97 Dollars($)

Hi Colin,

Great information thanks for sharing with us

colin · Posted: Thu May 17, 2007 1:19 pm Post subject:

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

motomom716 · Joined: 18 Apr 2007 Posts: 14 7.13 Dollars($)

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.

colin · Posted: Fri May 18, 2007 12:38 pm Post subject:

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

miller_st · Joined: 17 Jan 2007 Posts: 917 168.92 Dollars($)

We are always there to help you and wish that your situation improves. Smile

Miller

blue · Posted: Fri May 18, 2007 5:26 pm Post subject:

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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