Attorney Makes Deed In Lieu Offer?

[ryan]

Today I got a letter from the attorney for lender that is foreclosing on my house. Actually received FC summons from same attorney just 2 days earlier.

This simple short letter today says I 'qualify' for a deed in lieu and should call them immediately for more info.

I have a first and second (HELOC) with the same lender. However in the past, when talking with either one it was as if one did not know the other existed.??

The lawyer letter today does mention that any DIL would require the consent of any other lien holders. So, I'm wondering, could the first who just filed suit for FC not have even ran a credit report to see other liens were present?

Or, is it likely since the first and second are held by same lender that they control both and allow a DIL?..... it also says I would be relieved of any deficiency action in the future if I agreed. Any thoughts on this?

[DeadManCrawling]

Are you filing bk?

If the answer is yes, then you don't gain anything with DIL. You could, in fact, hurt yourself quite badly.

If you are not filing BK, then it might be worth a look, and a look by an attorney.

[ryan]

Are you filing bk?....

Pretty much have decided to. Was wavering for an awful long while, but I see almost no way out now.

Just out of curiousity, how would doing the DIL actually hurt the debtor who was doing a BK also?

[DeadManCrawling]

DIL could hurt you because taxes are not discharged in BK.

If you do a DIL and the bank sends you a 1099 for the difference, you owe taxes. Those cannot be discharged. If you allow it to foreclose and file BK, the deficiency is forgiven, at least through 2012.