Posted on: 27th Jul, 2009 08:13 am
What is the time frame for a DIL? I've already filed a Demand for Delay of Sale in anticipation of a FC and I know that will extend a FC for another 6 months once the judgement is entered, allowing us to pay down some debt and save up $ toward rental deposits, etc. But after reading through this forum it looks like the smarter move would be a DIL. (I'm a little confused as to exactly what advantages DIL have over FC, considering the current legislation protecting us from the lender coming after us for the deficiency amount and the fact that both affect your credit almost equally, if I'm understanding what I've read.) If the house doesn't sell and we have to do a DIL, how much time do we have before we will have to move?
The backstory: We are currently in foreclosure on our primary (and only) residence. My husband lost his job last November. Thankfully, he got another job in April but it pays about 40% of his old salary so we can no longer afford the regular mortgage payment. We are 8 months behind because after a few months the lender would no longer accept a single payment, only the full balance which we couldn't pay. We have an FHA loan but our lender tells us that it isn't Fannie Mae or Freddie Mac and therefore they won't lower our payment at all (we would need it lowered $400-$500/month). We're slowly lowering our debt but we still can't afford the $1500/month payment. So we're going to lose the house. The property appraised for $160k and the lender is telling me that they need an offer that will NET them no less than $140,800 otherwise we will be forced to do a DIL. (I'm worried about this b/c 3 other similar houses on our street have sold for $140k or less within the past 6 months.) Are they bluffing? If a pre-approved buyer offered $135-$140k would the bank really reject it?
Sorry for the lengthy message, but I'm hoping someone can offer me a ray of hope. We have a modest house in a safe neighborhood with good schools and great neighbors. We're good people who work hard and are trying to provide stability for our kids, but we're just in a bad situation.
I appreciate anyone who can correct any misconceptions I have and help clear the "fog". Thanks to all for any guidance!
The backstory: We are currently in foreclosure on our primary (and only) residence. My husband lost his job last November. Thankfully, he got another job in April but it pays about 40% of his old salary so we can no longer afford the regular mortgage payment. We are 8 months behind because after a few months the lender would no longer accept a single payment, only the full balance which we couldn't pay. We have an FHA loan but our lender tells us that it isn't Fannie Mae or Freddie Mac and therefore they won't lower our payment at all (we would need it lowered $400-$500/month). We're slowly lowering our debt but we still can't afford the $1500/month payment. So we're going to lose the house. The property appraised for $160k and the lender is telling me that they need an offer that will NET them no less than $140,800 otherwise we will be forced to do a DIL. (I'm worried about this b/c 3 other similar houses on our street have sold for $140k or less within the past 6 months.) Are they bluffing? If a pre-approved buyer offered $135-$140k would the bank really reject it?
Sorry for the lengthy message, but I'm hoping someone can offer me a ray of hope. We have a modest house in a safe neighborhood with good schools and great neighbors. We're good people who work hard and are trying to provide stability for our kids, but we're just in a bad situation.
I appreciate anyone who can correct any misconceptions I have and help clear the "fog". Thanks to all for any guidance!
hi jcb!
welcome to forums!
you can file for a deed in lieu of foreclosure before the lender starts the foreclosure procedure. people consider deed in lieu a better option than foreclosure because, you won't be liable for the deficient amount resulting from the sale of the property. lender can sue you for the deficient amount if you go for a foreclosure sale. in both foreclosure and deed in lieu, your credit rating would go down by 250 points. in case of a deed in lieu, you will have to leave the property once you transfer the property to the lender.
feel free to ask if you've further queries.
sussane
welcome to forums!
you can file for a deed in lieu of foreclosure before the lender starts the foreclosure procedure. people consider deed in lieu a better option than foreclosure because, you won't be liable for the deficient amount resulting from the sale of the property. lender can sue you for the deficient amount if you go for a foreclosure sale. in both foreclosure and deed in lieu, your credit rating would go down by 250 points. in case of a deed in lieu, you will have to leave the property once you transfer the property to the lender.
feel free to ask if you've further queries.
sussane
I HAVE TRIED TO WORK WITH THE BANK FOR OVER A YEAR, NO RESPONCE MOST OF THE TIME, I ALREADY TRIED TO DO THE LOAN MODIFY WAS DENIED, ASKED FOR SHORT SELL NO RESPONCE AFTER A YEAR I TYPED UP A DEED IN LIEU AND MAILED ALL COPIES OF PROOF OF THE WORK DONE ON THE HOUSE, DEED, DEED IN LIEU, KEYS, PICTURES SHOWING THE GREAT CONDITION OF THE PROPERTY, THE WORKS WAS SENT TO THE BANK AND I GOT IT SIGNED THAT THE BANK GOT IT. NOW THEY ARE STILL CALLING FOR PAYMENT, DO THEY HAVE ROCKS IN THEIR HEAD?? THIS WAS JULY 09 THAT I SENT IT BACK, THE QUESTION HOW LONG BEFORE I KNOW IF THEY HAVE RERJECTED IT OR WHAT THE TIME FRAME THAT THEY HAVE TO RESPOND TO THE DEED IN LIEU? ITS BEEN OVER 30 DAYS NOW.
It seems that they have not approved DIL. you contact other lenders for mortgage modification. What is your Equity in house?
ITS TO BAD I NO LONGER HAVE THE KEYS OR THE DEED THEY HAVE IT ALL AND I'M NOT GOING TO FOOL WITH IT. I HAVE WASTED A YEAR DEALING WITH WELLS FARGO. I HAVE LOST ALL EQUITY IT WAS VALUED AT 300,000 NOW ITS NOT WORTH 135,000. ( I WOULD THINK TO DENIE A DEED IN LIEU THEY WOULD HAVE TO MAIL IT ALL BACK AND THEY HAVE NOT) THEY CAN'T HAVE THEIR CAKE AND EAT IT TO. IF WE GO TO COURT I WILL SUE THEM!
Dracy
looks like the bank is not interested in any short sale or deed in lieu or even loan modfication
looks like they want to forclose on yoru property
I amnot sure if you cna sue them for anything
looks like the bank is not interested in any short sale or deed in lieu or even loan modfication
looks like they want to forclose on yoru property
I amnot sure if you cna sue them for anything
I email the co president of wells fargo yesterday, i got fast responce the lady in the office called right away and said they would be looking in to this problem. i think i can sue i tried to work with them over a year, now they have it back deed in lieu. they have possession so i don't think they can for close when they have possession. I don't think it will fly in court i have all my documemtation for over the year ready and waiting on the judge. if it goes that far.
Thats really good news
Congratulations
Now you have good contact probably you can keep callign that person, when you do not get a response
Good luck
Congratulations
Now you have good contact probably you can keep callign that person, when you do not get a response
Good luck