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What are the steps in deed in lieu of foreclosure?

Posted on: 24th Aug, 2006 06:57 pm
Hi Baanjo,

Here are the simple steps in Deed-in-Lieu of foreclosure.
  • As a borrower, you should document a valid reason and submit it to the lender.
  • Present all necessary documentation to the lender.
  • Allow the lender to inspect the inside of the property.
  • You may have to make a monetary contribution.
  • If the lender has escrowed cash for paying future taxes and insurances, you may have to forego the reimbursement of those funds.
  • Special wording should be used in deed-in-lieu to document the understanding between the lender and borrower.
  • Before accepting the deed in lieu, the lender should have the title re-examined and then an owner's title insurance should be issued to him.
The whole transaction should be carried out by an escrow company with new title insurance.

Hope you will benefit from this information.

Thanks,

Caron.
hi indigo!

welcome to forums!

after the deed in lieu of foreclosure sale gets over, you will receive an eviction letter from your lender. it will mention the time period within which you will have to leave the property.

feel free to ask if you've further queries.

sussane
Posted on: 31st Jul, 2012 12:04 am
We tried to get a loan modification on our home but our bank keeps raising the loan up instead of bringing it down. We owe $154K but talked to a realtor who stated we would be lucky on a short sale to sell at $100K. The realtor says to list the house and talk to the bank when we get a buyer, I think we should talk to the bank first. We can afford payments (barely), but it has no main source of heat and my health cannot do stairs any longer and we discovered recently a wall full of black mold. Should we contact the bank first?
Posted on: 25th Oct, 2012 12:29 pm
Hi Jeank,

You should contact the bank and apply for a short sale if you don't want to keep the property. The bank will look into your whole situation and let you know whether or not you will be able to short sale the property.

Thanks
Posted on: 25th Oct, 2012 11:21 pm
Two years ago I filed chapter 7 brankruptcy and did not include my home in the bandruptcy. Since then I have lost income due to the passing of my mother, and my husband is on a fixed income. I am now having difficulty paying my mortgage. I have not missed a payment yet, but it is coming. My question: do you think I would qualify for deed in leiu because of the bandruptcy?
Posted on: 30th Oct, 2012 12:11 pm
hi tina,

as you did not include your home in the bankruptcy filing, you're personally liable for the mortgage payments. in such a situation, if you can convince your lender about your hardship, then you will be able to get qualified for a deed in lieu of foreclosure.

thanks
Posted on: 30th Oct, 2012 10:38 pm
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