What are the steps in deed in lieu of foreclosure?

If an agreement is done on a deed in lieu, and no inspection was done, am I able to take out the repairs I have done to the property such as kitchen cabinets, appliances, AC, and lighting?. No agreement verbal or written was established. This was a rehab house in poor condition. New carpet and tile, and wall repairs are intack.

Hi Rick!

Kitchen cabinets, appliances, AC, lighting etc are all your personal property which you can take away. These things have nothing to do with the appraisal value of the house.

Thanks,

Jerry

My house has been on the market for over one year. In that time the value has dropped $50,000. My job has cut me back to two day a week and my husband is out of work. The last year has been a struggle to pay the mortgage. I want to give the house back to the bank and be done with it. I will be losing alot of money (approx $100,00) This is amount we put into it. This house has been the original money pit - it's in good shape now, but after much work. I don't believe in the "American Dream" of home ownership. I have had enough of the struggle. It is not worth it. I want out and I really don't care what it does to my credit. I called the bank and they said they would call back - two weeks later - still no call.
Thanks for letting me vent.

is there a form that i need as the borrower to give the house back to the lender. the bank refused to do a deed in lieu of foreclosure and i'm stuck. i paid on this property almost a year with it being vacant and cannot afford the notes any longer; in addition, the house has had fire damage and is not liveable. please advisse

Hi Browndirt!

It seems that you are in a tough situation. You will not be able to deed away the house to the lender because it is not a habitable property. You will either have to abandon the property or have to improve the property then sell it or rent it out. In case, if the debt amount is low, the lender may then charge off the loan to a collection agency. In that case, you will have to pay the money to the collection agency. They will not be bothered about your property.

Thanks,

Jerry

I left my home 3 months ago,because of threat on my life.I'm not able to return because I fear for my life.I have contacted my mortgage company,sent a written request for a deed in lieu,with details of above.How long does this process take?A appraisal on my home was done 12/22/08.My mortgage company has given me some information,but I am still not clear about the whole process.Pls help me.

Hi Greta!

Welcome to forums!

If the lender accepts the process of deed in lieu, he will inform you and then you will have to give away the property to the lender. The lender will then sell off the property in the market in order to recover the debts. If there is a deficient amount resulting from the sale of the property, then the deficient amount will be forgiven by the lender. But you will have to pay taxes on that amount as it will be considered as your income. To know more about deed in lieu, check out the following link:
http://www.mortgagefit.com/deed-lieu.html

Feel free to ask if you have further queries.

Sussane

I am military, and had to change duty stations in August of 2008. I tried to do a short sale of the house, starting the process in March of 2008. My mortgage company kept dragging their feet about it, claiming that documentation was not sent (though the only mode of getting documentation to them was a single fax number). This continued past my August change of station. I finally was able to get the person at the call center to dig up that information in the middle of August. I recently received a letter stating that a shortsale was not in the "best financial interest" of the company. I have been notified of impending foreclosure, with the necessary dates. Now I am trying to pursue deed in lieu. My question is, with all that is changing due to the mortgage crisis, what options seem most likely? BTW, my mortgage servicing company is AHM (currently bankrupt).

Due to illness and a reduction in salary, I can no longer make my mortgage payments. I have two loans on this property. Would a deed in lieu of foreclosure work for me? I cannot sell the property because of oweing more than what it is worth. I am completely stressed out over this
situation/ and this does not help my dealing with my illness of breast cancer. I have always paid my bills and do not like to be considered a
deadbeat, but am at a lost of what to do. I am 63 years old.
My loans are current as of now, my money situation has caught up with
me. What if any alternative is available to me?

Any suggestions would be greatly appreciated.

Thanks ,
Karleen

Hi,

To TomB,

A short sale would have been a great option for you and moreover it would have not damaged your credit much. As you are planning to negotiate the lender for a deed in lieu, you can try negotiating with the lender for a short sale once again as well.

To Karleen,

I can understand that you are passing through a tough time. But be patient. As you are facing hardship in paying the mortgage dues, you should inform your lender about that and apply for a deed in lieu. However, you should note that a lender will accept a deed in lieu only if you are delinquent on your payments.

Thanks

I sign a house for someone and the person that I signed the title for moved with it .now I would like to do a deed in lieu of forclosure. what can I do

hi marie,

a deed in lieu foreclosure comes into question when you have defaulted on your loan payments. you have mentioned that you had signed the property. didn't the person refinance the loan? if you want to go for a deed in lieu, you will have to write a hardship letter to the lender. if the lender accepts he will tell you what steps you need to take next.

I refinanced my home and within weeks of closing, I lost my job and I have no way of making the payment on the house. I don't want a foreclosure.

Hi cathy,

You can write a hardship letter to your lender and request for a deed in lieu or a short sale. If the lender is convinced, then the lender will tell you what next steps you will have to take.

Thanks