Discharged, now closed....and my mortgage company has now contacted me

[Panacea]

If any of you remember, my trustee was fighting w/Wells Fargo saying the deed was void. Well, I was discharged early Feb, and now the BK is closed. I have no idea what happened between the trustee and WF.

Anyway, WF contacted me about a Deed in Lieu of forclosure. The letter said they know I've been discharged and thought deed in lieu would work best.

Anyway, I haven't been able to get a straight answer. One of my debts discharged was a heloc of 25,000. Is this going to affect the DIL and going that direction with WF?? Strange question maybe, but the more I've read about DIL's, most mortgage's dont want to do this if you have a 2nd loan on the house.

Anyone???????

[MsKMG86]

Somewhat true but it doesn't differ much if this was a short sale with 1st Loan with Company A and 2nd loan with company B as those two have to negotiate terms to approve the short sale....when it comes to a 2nd lien for DILs most mortgage companies policies varies as they would like to own both 1st and 2nd lien if they are to close for a DIL as it's a much smoother or easier process. Otherwise you may have to work out arrangements on the 2nd lien to get it released so they can approve the DIL. It just depends on Wells Fargo's DIL process. If the HELOC was discharged and was the 2nd lien that you speak of then you may be in good shape for DIL since they can't collect for the HELOC only the 1st loan would remain.

I work in mortgage industry for one of the top 5's and for the company (I do not work with WF and in no way affiliated with them) I work, DILs don't close (approve) if there is a 2nd lien and we don't hold both 1st and 2nd. Otherwise we tell the borrower/homeowner to get the 2nd lien released (whether its thru arrangement of payments, etc) as it can't show as a hold on the home especially pulling the title.

You may want to check Bankruptcy Dept or SS Dept with WF on how they handle the DIL. You could do a short sale but various factors come into play for Discharged Bankruptcy flagged accounts for homeowners wishing to no longer retain the property. Most times they wont come after you for the deficiency in the loan but it varies based on the investor, state you live in and other factors of the loan.

[Panacea]

Thanks for your reply, but I don't think anyone can come after me for the deficiency, due to the mortgage and heloc were discharged in the bankruptcy. I'm just wondering should I wait for the impending forclosure, and do a DIL, which would make it less stressful for me. From what I've read, DIL has a more difficult time when you have a 2nd loan on the house. Since all have been discharged, will I be okay?

[keepswimming]

I am trying for a deed in lieu now, since BofA ruined our house and the short sale we had pending. The BK dept really has a way of messing everything up. Last week they told me and the guy in charge of expediting our deed in lieu that they could not approve the DIL because they needed proof that we were discharged. Um, we already sent the proof, but we will send it again now that we have spent the entire day yet again, in wading through your piles of manure and double talk. Oh, one of the people in the BK dept also told me that she really doubts that a DIL will make this all happen any faster for us, credit wise, and she wonders where I am getting my information. She said even with a DIL, we would have to wait until the property sells, etc and if our home is not in a desirable area then we are just going to have to wait it all out. WHATEVER! How can these people be allowed to work here, "advising" us peons about things that affect our credit for years and years, and yet be so lacking in facts? I guess, that is how we got ourselves in this mess in the first place, by listening to people we thought knew better than us, or that were "helping" us.

[angles]

I think I am missing something here, why play around with the bank and offer them a DIL? I don’t understand the benefit to you personally. The debt has been discharged so you are no longer responsible for it in any way. Let the bank spend its own money to foreclose. I would be very concerned with language in the DIL paperwork that would make you liable for the deficiency...

[Panacea]

I actually just spoke with them today. Since discharged, no monetary responsibilty is mine. I was thinking the DIL would be a way I could leave in a few months calmly....not waiting for the ax to fall with foreclosure, plus, the mortgage would be outta my name....no more HOA to be paid month after month.

Anyway, they said the only way I "might" qualify for DIL is if I try a "short sale" for 90 days. Otherwise, they will foreclose. They did mention the date of the notice that they intend to tell me that they will be scheduling a date to sell my house at auction, which is July.....not an actual date set, just the day they will send the notice.

I was hoping for DIL, and moving in June....but I certainly don't want to waste my time w/the short sale. Now that I know July is their timeline to begin the sale process, I'm just letting it go and moving in Aug. I wish I had the patience to wait it out till the end. Who knows how long that may be....but I have a hard time with the pressure of not knowing when I have to move. I'm done!