How long does a deed-in-lieu process take?

Hi Whrabowski,

A deed-in-lieu of foreclosure needs to be completed within a period of 90 days after it starts off.

Thanks
Monroesque

Hi,

You can read this article for more information about deed in lieu which can be used to avoid foreclosure.

Thanks
Blue

Hi Whrabowski,

If the foreclosure sale of the property results in an outstanding balance remaining on the mortgage, the lender may pursue a deficiency judgment. Then the court can authorize a lender to collect part of the outstanding debt by way of deficiency judgment.

The lender can then follow all available collection options like garnishment or execution on other personal property.

Thanks
Colin

what is the advantage of a deed in lieu over a short sale

Hi Ray,

Welcome to the forum.

First of all lenders do not always agree for deed in lieu. DIL even effects more than short sale. The only advantage of DIL over short sale is that you need not to pay deficiency judgment.

There is an article regarding Deed in lieu. You can check this out- http://www.mortgagefit.com/deed-lieu.html

Feel free if you have any further questions.

Best of luck,
Larry

How long will the borrower be able to stay in home once the DIL has been processed?

Hello Lynn,

The laws vary with the state but once the processing has started, the property is owned by the lender and he might evict you any time. Your lender will give you an eviction notice which should tell you about the time you have. It is usually 30 days but that varies from state to state.

If you tell the place where you live, I might help you with the laws of your state.

if the home is foreclosed on and sold at auction for less than you owe then it can create a deficiency judgement for the difference. as with any judgement they could end up garnishing your wages at some point. if you choose to file a chapter 7 then this can be included in the bk. a deed in lieu of foreclosure will not create a deficiency. so depending on how much debt you have there are a couple of options to look at.

I am several payments behind on my mortgage. I contacted the mortgage company. I've been in touch with the mortgage company. Today they told me that I am in pre-foreclosure and that I can apply for a DIL.
Two questions: Is this worth doing?
Also, the property is in FL and I live in NY. How long will it take them to foreclose on a property in FL? I know that each state is different.
Thank you.

Hi Jackie,

In Florida it takes usually a period of 135 days to foreclose on a property. The time period starts from the day the lender files foreclosure and seeks court action.

Didn't your lender advise you to go for any repayment plan as such? How's the market there in your area? Are homes selling at their usual prices?

A deed in lieu will be ok for you as much as I understand. But there could be other options too. In case your lender does not get the sale price enough to cover the loan balance, he may not not file a deficiency judgment at the court. So, you need not make any payment towards it.

Regards,

Jessica

i am 100k in the hole and the lender is willing to do a forebearance agreement but that does not lock me into a rate permanently. i am thinking about foreclosing....will they try to sue me in california or with all the laws that have been passed is it more likely just to affect my credit

Hi ken,

Welcome to the forum.

How much do you owe to the lender and how much is the appraised value of your property? Is it that the difference is $100k?

If the sell price is less than what you owe to the lender, he may claim the money and foreclosure will have a huge negative effect on your credit?

Why don't you go for Short sale? It will effect you credit much lesser than foreclosure.

There is an article on different ways to avoid foreclosure. You can check out this article at http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Hope this will help you.

Feel free to ask if you have any further questions.

Best of luck,
Larry

Hello,
I am in the same situation. I owe 530K on my home. My last appraisal was 650K back in April 07 when I refinanced. However due to market conditions, It would be great if it sells for 370K. The place is 60 miles from my work place and the commute is killing me. Also, I am expecting a baby in 2 months and want to stay close. I rented a place near my work place now. This thing is stressing me out. I havent fell behind on mortgage yet and I am thinking of stopping the payments. What are my options...forclosure or DIL, short sale? There are a lot fo houses in my area into forclosure and short sale but hardly any takers.. This is in Tracy, CA. I am with INGDirect bank. What are my options..

Hi Kish,

I've already replied to your query at http://www.mortgagefit.com/shortsale/stop-payments.html . Some other memebers have also given their suggestions. Please have a look at the page.

Hi Kish,

Welcome to the forum.

If you do not want this home any more then short sale is the best option to choose. So talk to the lender ASAP and try it out. It will not affect your credit much.

Feel free to ask if you have any further questions.

Best of luck,
Larry