Posted on: 17th Nov, 2010 07:48 pm
We filed BK in 07 and discharged in 08. We are now trying to buy another home but have found out that the home was in foreclosure until it was purchased in May of 2010. Our attorney, or anyone from the banks that owned the loans ever mentioned anything about a Deed of lieu, (Relieving us from foreclosure). We made many phonecalls to the lenders explaining our situation and even mentioned our move out date etc. No mention of a Deed of Lieu. How is one to know of something like that if they don't know? We assumed that the discharge of the BK was all there was to it. Does anyone know if the Deed of Lieu was an instrument used in 07-08?? Any advice?
Thanks
Thanks
hi sansome!
welcome to forums!
the lender will notify you whether or not the property was sold off at a deed in lieu of foreclosure sale. you should contact your lender once again and get to know whether or not it has gone through a deed in lieu of foreclosure.
feel free to ask if you've further queries.
sussane
welcome to forums!
the lender will notify you whether or not the property was sold off at a deed in lieu of foreclosure sale. you should contact your lender once again and get to know whether or not it has gone through a deed in lieu of foreclosure.
feel free to ask if you've further queries.
sussane
Does a Chapter 7 BK keep a foreclosure from happening in the first place? I was led to believe it does and that a Chapter 13 was used as a temporary stay of the foreclosure until alternative financing could be reached.
Thank you
Thank you
Sansome: the bank would not use a deed in lieu of foreclosure after they've already foreclosed. I don't get what Sussane was saying there at all.
Lenders are not obligated to ask you if you'd like to do a deed in lieu; they simply want to get paid for the loan you took, and if you haven't the notion that a dil would be helpful, they're not likely to suggest it. Most often, though, it's a good option for both parties, since it hastens the process and thereby keeps costs down.
Deeds in lieu of foreclosure have been around for many, many years; so certainly in 2008 it would have been a potential option for you.
Duane: any bankruptcy filing puts an automatic "stay" on a foreclosure proceeding. That's not a preventive measure, but a hold on the action. "Alternative financing" isn't usually something that people facing a foreclosure have at their disposal, though I won't say it's not possible.
Lenders are not obligated to ask you if you'd like to do a deed in lieu; they simply want to get paid for the loan you took, and if you haven't the notion that a dil would be helpful, they're not likely to suggest it. Most often, though, it's a good option for both parties, since it hastens the process and thereby keeps costs down.
Deeds in lieu of foreclosure have been around for many, many years; so certainly in 2008 it would have been a potential option for you.
Duane: any bankruptcy filing puts an automatic "stay" on a foreclosure proceeding. That's not a preventive measure, but a hold on the action. "Alternative financing" isn't usually something that people facing a foreclosure have at their disposal, though I won't say it's not possible.
