Posted on: 28th Jan, 2011 08:07 pm
Do you have to be behind in mortgage pmts before the bank will allow deed in lieu?
welcome nnnnnnn,
lenders will normally offer you the option of deed in lieu of foreclosure if you are past due on your mortgage payments.
lenders will normally offer you the option of deed in lieu of foreclosure if you are past due on your mortgage payments.
I just completed a deed in lieu, and with my mortgage company I was 6 months behind on my payments before it was offered to me. I kept telling them when they would call me that I wanted to do a deed in lieu. Finally the option was given. I had to send in all the information they wanted and a letter of hardship as to why I could not afford the home. They assigned me a negotiator and from then on I dealt with them. It took about 4 months to complete the entire process.
Hope this helps.
Hope this helps.
usually you will have to be behind and they may want you to try to sell the property as a short sale first before offering you a deed in lieu. If you are current but cannot afford the mortgage, have you tried a loan modification to help you? Try listing the home for a short sale, or call your lender and ask if they will do a deed in lieu and that you are at risk of fallling behind on your mortgage payments, but you do not want to ding your credit. If you miss one payment your credit score could drop 30-60 points.
Good Luck!
Good Luck!