How does deed in lieu process work?

Hi weng,

Welcome to the forum.

It all depends on your mortgage company. There are many mortgage companies who can work on a loan even when you are on foreclosure process with other houses. So it all depends on your lender if he will work with you or not.

The lender wants to know that you are going to make an effort in repaying them back the loan on a monthly, timely basis. In the letter, you must let them know that you will be able to start making payments again as soon as either a new job, a contracted assignment, or you sell your house. Whatever is bringing more income in. Make sure you mention the hard time you are having making payments.

If you dont see yourself being able to afford the payments in the near future then I would suggest looking at options that would release you from this obligation. The first option could be a short sale. This is where the lender accepts a payoff that is lower than actually owed. They will only consider this when the you have a buyer that is willing to pay market value for the home. This way, you wont have a foreclosure on your record. A deed in leiu of foreclosure could be another option. Please call your lender to discuss these and other options that they may have available to you.

We currently own three houses. One is rented and paying for itself. The second, our current residence, we are trying to sell because the payment is way to high for us to be able to handle. The third is in another state and will become our home after we figure out what to do with this one. We are current on our payments, however, we are older, not working and depending on our retirement to keep us going. How do we get out of this? Losing credit points really doesn't matter as we plan on staying in the other house for a long time. How can we avoid the lender going after our assets?

welcome laura.

how much do you owe to the lender for the second house that i suppose you are going to sell? i feel you should try and sell the house if it worth more than what you owe to the lender.

you can also request the lender for deed in lieu of foreclosure if the property value id less than what you owe to the lender.

I would like a sample letter stating that our youngest brother (40 yrs. old) should be the one living at my mothers house. She died last year and left no will but we are in the process of obtaining one. The letter needs to state that he is the sole living family member who takes care of the house and pays the utlitily bills and takes care of the house.

Hi Tomas Vela,

Welcome to forums.

I don't think you will get any such sample letters online. It will be better if you just visit your legal adviser and get it drafted.

Thanks.

Whenever a bank agrees to take your house on a Deed in Lieu process, they will pay any backed up taxes and Hazard insurance!!! the good news is that you do not have a debt afterwards like if you would go through Foreclosure.

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Sincerely,

Mirla Alvarez

I'm thinking about loan modifation. I was just wondering if it's best to work with your lender directly or should I work with a company who charges a large fee that I really can't afford. Would the outcome be the same?

hi kitty!

welcome to forums!

you can directly speak to the lender and try to negotiate for a loan modification. you will have to write a hardship letter to the lender and apply for a loan modification. if you do not feel confident enough to negotiate with the lender, then you can contact a loss mitigation expert to do it on your behalf.

feel free to ask if you have further queries.

sussane

My house will be foreclosed upon in about 5 months. Unfortunately, my husband can no longer make payments and he has decided he wants nothing to do with the process. The house is in my name 100% due to good credit rating at teh time but his income was used for the purchase. How can I get out of this house being left to deal with this and not even having a fraction of the income to pay anything. Thanks so much

Hi Maryann,

In order to remove your name from the property, you may quitclaim it to your husband. But if your name is on the mortgage docs, you will still be liable for the payments. I think, it will be better if you could speak to your lender about a short sale or a deed in lieu.

Thanks

the last two years i have paid my college tuition ($949.00-$1037.00) every nine weeks by working a second job. i can't continue working two jobs in one day for another two years. it has taken a toll on me. getting a degree will increase my full-time job income. it will be impossible to pay my mortgage and tuition without working my two jobs. i don't want to get school loans because i don't want to have thousands and thousands of loans to pay back with interest.

my interest rate is 7.50% (625 fica score). i was told that if i put money down at closing it would be 6.25 interest rate. also, told by mortgage broker that i could refinance 6 months later for a lower than 7.50% interest. i later found out that you have to pay closing cost fees and a down payment. needless to say, i still have the high interest rate.

i'm trying to get my interest rate lowered with the neighborhood assistance crop. of america (naca). they will help you get lower interest rates if you have a hardship. if i discontinue working my second job to pay my tuition, i will get behind in all of my finances. is being a college student and paying tuition considered a hardship?

thanks,
shawn

Hi Shawn,

As far as I know unemployment, illness, divorce or family issues and reduced income are considered as hardship. Being a college student won't be considered as a hardship.

Thanks

due to financial hardship/lack of work-we are 5 months behind on payments. We requested a loan modification and want to try and save our home. Is this possible. Forclosure has akready been started.