How long does the property need to be on the market before I

herself68 · Joined: 29 Dec 2008 Posts: 2 1.39 Dollars($)

How long does the property need to be on the market before I can do a deed in lieu?...I submitted a hardship package to my lender in September and had another company agree to re-fi my morgtage for the market value of my home. I then got laid off at work and have not made a payment since November as the offer is no longer available.
I want to do a deed in lieu and walk away. The lender already has all the paperwork and is aware of my job situation.
Whats next? How long do I have before I have to move out? Do I have to have my property on the market for a specific time first? What happens if the lender doesnt want to do DIL?

gmakerley · Posted: Mon Dec 29, 2008 8:01 am Post subject:

i'll suggest you stay on top of this and continue to keep a dialogue going with your lender. are they fully aware of the situation? that's not doubting you - just something you're going to need to verify.

i'd think that the bank would welcome a deed in lieu instead of taking the foreclosure route, but you'll need to impress upon them the timeliness issue. there's no specific length of time that a home must be on the market - negotiate hard with them and let them know that you've neither the income nor the buyers to do anything but the deed in lieu.

Guest

Hi George,
Thanks for the quick reply. I immediately let them know that I had lost my job - so yes, they are aware. They were going to send me paperwork for my realtor to fill out. to be honest, they were less than co-operativer in the past - I have no reason to believe they will help now, and that is my concern.... I first started this process a year and a half ago, when I realised I woulnt have the 5% saved to re fi on my own. They told me then they could not help because i was not late on any payments. I even went through credit counseling to see if I could cut costs anywhere to help me save. They suggested I get a room mate to offset the bills etc. Believe it or not I even did that (what a disaster! cost me more in the long run..) I have been as pro-active as possible, and now I am fed up with them and the entire situation.. I will speak with them soon and post an up date. I purchased the property with a no money down, no doc, 80/20 mortgage. Not sure if that makes a difference or not...
Dee

adonis · Posted: Mon Dec 29, 2008 11:27 pm Post subject:

Hi dee,

It's good that you have informed the lender about your situation and they have all the paperwork. As far as I know, if a deed in lieu is accepted by the lender, it will take 90 days to complete. So you should should speak to the lender and check if they are accepting the deed in lieu.

I don't think walking away from the property will help you much as it will lead to the foreclosure of the property.

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