What are the steps in deed in lieu of foreclosure?

I lost my job of 32 years in june 2008. I got another job which requires me to take call. I had to leave my home 2hrs away and rent an apartment close to work. I decided to do a deed in lieu, but now my home is growing mold. Should I just do a foreclosre?

Hi curves!

Welcome to forums!

I would suggest you to contact your lender and apply for a deed in lieu of foreclosure. Try and negotiate so that the lender agrees to it. If the lender does not agree to it, then you can let the property go into foreclosure.

Sussane

I have filled out papers for a deed in leiu. I was told it would take 90 days for them to get it filed, I asked if I needed to make the association dues & they said everything was included and not to pay dues. I just want to verify this.

Hi joan!

Welcome to forums!

As far as I know, you'll be responsible for the homeowner association dues until your property is sold off at the auction. It is better to pay off the dues or else the association may place a lien on the property. However, laws may vary from state to state. You should contact an attorney and take his opinion in this regard.

Feel free to ask if you've further queries.

Sussane

i lost two jobs i held for years my husband is not making enough money
house cannot be sold for what is rest of our principal
if we do deed in lieu foreclosure, do we still have to pay rest of our loans

Your query has been replied to in the given page:
http://www.mortgagefit.com/deed-lieu-41.html#148681

Take a look at it. I hope it will help you.

i have primary mortgage and a home line of credit both with wells fargo for a house i bought in 05. during this time i've lived and rented the house out. my job is an hour and a half away, and i can't afford to stay in this house any longer. i never refi both loans, so i never took any money out. if wf approves my application for deed in lieu of foreclosure, will they forgive both the primary mortgage and the line of credit? or only the primary. thanks.

hi cmron!

welcome to forums!

if your lender accepts your request for a deed in lieu, then he would forgive the deficient amount resulting from the first mortgage. however, you would be liable for paying the second mortgage balance to the lender. i don't think the lender will forgive the line of credit.

feel free to ask if you've further queries.

sussane

Hello, I am current on my mortgage but haven't lived in the home for over a year. I rented to a young couple for the past year, and they just currently moved out. The home needs quite a bit of repair as the renters did not take care of it. I don't want to invest a ton of money fixing it up when I am not even living there. I am paying on a home that I dont' even occupy. Is a deed in lieu of foreclosure the best option? I forgot to tell you that I just lost my job after 30 years of employment so I do not have a working income either. What would you suggest?

Hi Laney,

Deed in lieu of foreclosure is a good option to consider in your case. You will have to contact the lender and let him know about your financial crisis. Depending upon your financial situation, the lender will let you know whether or not he would accept your request. A deed in lieu of foreclosure will reduce your score by 250 points.

If I signed a "Deed in Lieu of Foreclosure" and both sides agreed to the terms, it that the final steps to completeing the transfer of the property in questioned? Also there is a paragraph titled "Continuing Nature of Lien", what does this paragraph mean?

If both sides agree to the deed in lieu of foreclosure, then the lender will sell off the property at an auction in order to recover the dues. After the sale of the property, the deficient amount will be forgiven by the lender. If you are unable to understand the agreement related to deed in lieu, then you should contact an attorney and he would make you understand it. You may even contact your lender and ask him to clarify the terms and condition of the property sale.

My husband and I want to retire in 2 years. We own a home that is currently worth about $30,000 less than the mortgage balance. I own a child care center that was once our home but we converted it into a business. My income has really taken a hit with the economy and people losing their jobs therefore they do not need daycare. We can not afford the monthly mortgage on our home. As of now we are 2 months behind. Last year I applied for a loan modification for reduced monthly payments. The lender only agreed to put the late payments on the back end of the loan and did not reduce the monthly payment at all. I have been researching DILs and think this would be for us. We could save money until we retire in 2 years and we would also be able to live in part of the building where the child care center is temporarily. As far as our credit goes it has taken a hit anyway because of all the late mortgage payments due to my fluctuating income. Please advise.