Posted on: 02nd Feb, 2010 11:11 am
bank of america(formerly countrywide) holds our mortgage. we were denied a deed in lieu of foreclosure unless we paid them $10,000. they estimated that was a percentage of their losses. is that a legal request and if so, what is this process called? the house has been on the market since 5/08 and no payments have been made on the mortgage since 7/08 when my husband and i seperated.
I would imagine you are seeking the deed in lieu because you can not afford the mortgage so you probably can not afford the $10k? They are most likely just taking a shot to see if you will pay up. Have you had it listed for what you owe or have you listed it as a short sale?
Thanks for the response. We had to include a hardship letter with our income information, so yes they know we can't afford it. They denied the deed process unless we pay $10,000. Is that legal? The house is now listed as fair market value which is less than we owe.
Well they can do whatever they want since they hold the debt. I think if you apply for a short sale you would be able to get out of the property without taking anything out of pocket.
i have to agree with brad, that the lender can do as it pleases in accepting or not accepting the offer of a deed in lieu of foreclosure. they're looking at losing money no matter what, so their request for $10K is a method by which they can cut their losses, if accepted.
i don't disagree with the short sale suggestion, though i would caution that many lenders are seeking a deficiency judgment in those instances.
i don't disagree with the short sale suggestion, though i would caution that many lenders are seeking a deficiency judgment in those instances.
Thats correct some due seek the diffiency but if you can get the right people to work on it you have a better chance of getting out of it without a judgement. Especially if it is your primary residence.
Thank you for all of your comments. We would work on a short sale, but there have been no offers. Virginia does allow deficiency judgements. Unfortunately, it looks like foreclosure will be the next step.