Deed In Lieu Question

bgreene_74 · Joined: 02 May 2007 Posts: 4 2.87 Dollars($)

I think I may have posted this originally in the wrong forum. I will ask it here just in case.

My husband and I are in the unfortunate position of losing our house. I spoke with our lender today to see about possibly doin a deed in lieu of foreclosure. I was told that I need to fax to them within 24 hours paystubs, reason for default and a listing agreement. My question is whether or not it is common practice for the lender to ask for a listing agreement. I'm a little confused as to why we would list our house if we are going to deed it back to the lender. The customer service person I spoke with wasn't too helpful and left me more confused about our situation than I was to begin with.

If it helps in answering my question, our home is located in Sacramento, CA and we purchased it in September 2006 for $365k and recently received a letter from the county assessor stating that our property has been reassessed for 2007/2008 at $346k.

blue · Posted: Wed May 02, 2007 1:54 pm Post subject:

Hi Bgreene,

Welcome to Mortgagefit discussion board.

Listing agreement is a contract between you and the listing broker and sets out the conditions of the listing. Lender can ask for it before considering a deed in lieu of foreclosure.

Thanks
Blue

Guest 0.10 Dollars($)

Bgreene did you ask about any other repayment plan with the lender by which you can continue the payments?

bgreene_74 · Joined: 02 May 2007 Posts: 4 2.87 Dollars($)

Thank you Blue for replying so quickly.

So, would I contact a real estate agent and explain our situation and have them draft a contract? We've bought and sold homes before, just not in a deed in lieu situation.

bgreene_74 · Joined: 02 May 2007 Posts: 4 2.87 Dollars($)

Olive,

In any other situation a repayment plan would work for us but we are now two months behind and I feel that a repayment would only be a band-aid. We would still fall behind on payments and eventually enter into foreclosure. We foolishly purchased this house at the very top of what we qualified for and now will never be able to sell it for what we purchased it for.

miller_st · Joined: 17 Jan 2007 Posts: 917 168.84 Dollars($)

But if you can get a buyer then try to sell it instead of going for a dil. How much balance left on the mortgage? The house is now 346k so probably you will be able to pay off the mortgage after the sale.

colin · Posted: Wed May 02, 2007 2:09 pm Post subject:

I know of ACORN Foreclosure Assistance Program by which your rate can be reduced so that you can afford the payments. You should look at it: http://acornhousing.org/TEXT/fap.php

bgreene_74 · Joined: 02 May 2007 Posts: 4 2.87 Dollars($)

We just bought the house in September 2006 for $365 with a zero down. The county has reassessed the value at $346 so as of now we have zero equity. even if we were able to see it (we live in N. California and the market is pretty bad) we would still owe money on it.

Guest 0.10 Dollars($)

I would say get into a repayment plan, bring the loan current and then try to get the loan refinanced if possible. Foreclosure or a deed in lieu will dent your score and try to avoid them if possible.

Samantha

Hi bgreene,

Welcome to the forum.

Perhaps the lender feels that you may have listed your home to sell it as you couldn't pay for the loan anymore. And, this is why he has asked you for a listing agreement.

In general, if a borrower fails to make payments on the home loan, he may go for a sale of the home. In case, the home is on the market at a fair market value for at least 90 days, the borrower may be eligible for a deed-in-lieu. In such cases, he has to submit a copy of the listing agreement.

However, if you haven't yet let the house for sale, there is no question of the agreement. So, you can inform the lender about it and provide him with the other copies (paystubs, reason of default etc) that he has asked for.

Hope this helps...

God bless you.

Samantha

Guest 0.10 Dollars($)

Assesed value does not equal house appraisal. Your home is worth the market price. Counties generaly asses way under the homes value. I would say if the assesed value is 346K then your home is worth between 400K and 450K. Call a real estate agent and tell them you are thinking of selling. Ask them for a CMA( Comparative Market Analysis). This is free and will tell you what your house is approx worth. Hope this helps.

All times are GMT - 7 Hours

Page 1 of 1