deed of lieu vs shortsale

Dbrierff5107 · Joined: 15 Oct 2008 Posts: 3 1.89 Dollars($)

the bank wants to so a deed of lieu but the papers they sent us are short sale papers?..are they the same?

jameshogg · Posted: Sun Oct 19, 2008 10:50 pm Post subject:

Hi Dbrierff!

I think your deed in lieu application was not accepted so the bank has sent you the papers for short sale. If you have any problems doing short sale, you can speak with the bank authorities.

Thanks.

cliff · Posted: Mon Oct 20, 2008 8:03 am Post subject:

Hi Dbrierff,

A Deed in Lieu is not the same as a short sale...they are two different options that have different requirements and different steps with your lender.

Please be sure that you are talking to someone within the Loss Mitigation department at your lender. There should be a representative in this particular department who has been assigned to your file...be sure to speak to this person each time. They will be able to tell you about any workout options (the Deed in Lieu, Short Sale, loan modification, etc) that you may qualify for.

There are certain eligibility requirements that you must meet, before your lender will even entertain the option to accept a Deed in Lieu from you:
• Are you imminently facing foreclosure? Are you at least 31 days delinquent?
• Have you exhausted all means to avoid foreclosure?
• You, the borrower, must voluntarily submit a written offer of the Deed in Lieu and it must specifically state that the offer to enter these negotiations is being made voluntarily. You must list all the conditions for which the DIL will be accepted. Including the agreed upon transfer date of the property. On that date, the property must be vacant and clear of all your personal property.
• Usually the lender requires that you have listed your home with a Realtor for at least 30 days. They need to see that you have attempted to sell the property, but that you have been unable to sell the property. They prefer for there to be no other liens against the property at all.
• The property should still be occupied, unless you provide documentation that can verify your need to vacate the property, i.e. loss of income, increased living expenses.
• The property is not a rental investment, nor used as a rental for more than 12 months.

If the papers you received from your lender are truly for a Short Sale, then you must follow the instructions and requirements that are listed in the documents.

A short sale is where your lender accepts a sale of your home for less than what you currently owe on it.

Please let us know if you still have questions and still need further help.

Good luck.

Very Happy

All times are GMT - 7 Hours

Page 1 of 1