What are the steps in deed in lieu of foreclosure?

I have lost my job and unable to afford my mortage. I have had many conversations will my lender a they say because I have more debt than income they cannot help me. So we agreed to do a short sale. I am now 2 month behind and foreclosure is just a month away. Should I do deed in lieu and how would I do that what are the steps. Also should I move before my credit is bad

I have two loans on my home and owe approx 211K on the mortgage, My home is worth about 125K right now. I have spent the last year tring to get a loan modification with no results. I cant afford the house with the arm adjustments. would a dif be the best option?

Yes, I think deed in lieu foreclosure will be the best option here. No doubt it will hurt you credit but right now you don't have any other suitable option. Your home value is too low to help you recover the mortgage balance from the sale.

Thanks

would there be any reason a bank or mortgage company would not approve a DIL? if so what would those reasons be.

If you current on your payments, then there are chances that the lender would not accept your deed in lieu foreclosure request. Moreover, accepting a deed in lieu or not will depend upon the discretion of the lender.

We bought a house on 9/16/2008 for $280,000, values in the area are now between $200000.00 & $225000.00. We are not behind in payments but we just want to move back where we have established doctors & friends. We are 81 & 68. We want to preserve our good credit score. We have savings, which I understand prevents us from getting a short sale is a forclosure our only way out of here.

Hi Traber!

Welcome to forums!

You can try to list the property in the market and check if you can get a buyer for the property. You can contact a real estate broker and he will help you in listing the property. However, you should note that as soon as you sell off the property, your mortgage will become due. So you'll have to pay off the mortgage in full immediately.

Feel free to ask if you have further queries.

Sussane

if the bank has come to me with the deed in lieu can they come back for any unpaid even if they sell for lees?

In case of a deed in lieu, the lender will forgive your deficient amount. You'll not be liable to pay the deficient amount to your lender.

I moved from my home in Michigan to Missouri in April 2006. Since then it has been on the market, rented for a year, and now back on the market for $30,000 less than the purchase price, with NO interest.

We are thinking DIF because the home simply isn't moving. Should we get a mortgage in Missouri, buy a home here and then let the home in Michigan go?

Hi JD!

Welcome to forums!

You can apply for a mortgage in Missouri to buy a home. Then you can apply for a deed in lieu foreclosure for the property located in Michigan. If you go for a deed in lieu, it will lower your credit score and you won't be able to get a mortgage for buying property in Michigan.

Feel free to ask if you've further queries.

Sussane

I have a second home that was under construction. The home has lost about 60% of its value and the lender is going to send the home into default do to the fact there has been no work complete on the home, but all payments are current. Will they take the keys back on a home that is 90% complete?

if your home is going to foreclose and your attempts to deed in lieu of foreclosure are unsuccessful is it smart to foreclose and then file bankrupcy? help....

Hi!

Welcome to forums!

To Confused,

The lender can foreclose the property and take back the keys if you've defaulted the loan. If you're current on your payments, the lender will not be able to foreclose the property.

To Alice,

If your lender has not accepted your request for a deed in lieu, then you may directly file a bankruptcy. You do not need to let the lender foreclose the property first. However, I would suggest you to apply for a short sale first and check if the lender agrees to it. In this process, you can sell off the property at a lower price but you would responsible for the deficient amount resulting from the sale of the property.

Feel free to ask if you've further queries.

Sussane

I bought my house in 2006 and my wife and I could barely afford it. First house. In late 2008 my wife went from 40 hrs to 10 hrs a week and my Salary got cut and I got moved to hourly. We contacted the mortgage company and asked them if we could restructure the loan but they said my debt to income ratio was too high to redo anything.

We havent been able to make payments for quite some time now and the lender has hired a lawyer to send us the letter of intent to foreclose. Our incomes still arent quite high enough to pay the loan plus our outstanding student loans. This is the first time ive heard of DIL and was wondering if this is even an option for us?

The other thing to note is the house we bought has some problems and needs fixed up fairly badly. It probably will not sell for the purchase price especially with the housing market being so depressed in our area. Does this affect the lenders willingness to do a DIL?