Which would you choose after discharge (Short Sale, Deed-in-Lieu, Foreclosure) ?

[AlmostAmos]

We had 2 mortgages with Citi. Both were discharged in our CH7. Citi has been calling for the past week or so & finally got a hold of my wife this morning. They asked her what her plans were. Did we want to keep it, sell it, etc. The person said "you have 3 options if you don't want to keep it: short sale, deed-in-lieu, or foreclosure". This is what she told my wife about each:

-They would require we pay a 1/2 payments during the short sale for as long as it takes. And, they would give us $3k once it sells.
-Offered $3k to go the DIL route
-Gave my wife a hard time about "not wanting a foreclosure on your credit". My wife told her that it is already discharged in our CH7 so no foreclosure would be going on our credit. She said "well, the banks will know & it will be on your credit so you don't want to go this route".

We are paying for a rental, have been for the last few months. It is very close to the house in question & we've not moved b/c we would rather stay in our current home & avoid moving - until we have to. What would YOU do? I'm not paying them a $.01.

-AA

[screentest]

This really depends on your situation. If you have already secured and are paying for a rental then I would imagine you want to get on with your life ASAP. The fastest way to transfer title is the DIL. As far as the credit report goes, a DIL or foreclosure will only show up in the public record section of your CR, the rest will remain IIB.

If you were still living there rent free I would recommend playing the loan-mod game to buy yourself some more time in the house before you secured a rental but it sounds as if you have already done this. And as far as paying 1/2 payment to complete a short sale.........like you have done....I would show them the backside of my lower half bent over in the wind!

ST

[helpme2010]

This really depends on your situation. If you have already secured and are paying for a rental then I would imagine you want to get on with your life ASAP. The fastest way to transfer title is the DIL. As far as the credit report goes, a DIL or foreclosure will only show up in the public record section of your CR, the rest will remain IIB.

If you were still living there rent free I would recommend playing the loan-mod game to buy yourself some more time in the house before you secured a rental but it sounds as if you have already done this. And as far as paying 1/2 payment to complete a short sale.........like you have done....I would show them the backside of my lower half bent over in the wind!

ST

ahahahah screentest, I love the comments like telling the mortgage company to pound dirt, or in your case showing them the backside half bent over in the wind. I know there must be a monty python quote I can use here somewhere, tell them you are a living parrot and pining (crazy monty python skit about the dead parrot).

I am in the position where I want to stay rent free for awhile, and have contemplated the loan mod game. They actually sent me loan mod docs before my 341, so I am curious what exactly will happen after or possibly before discharge. I have a good bk attorney, so I am curious what strategies he will work with me on to extend my stay.

Afterall, the mortgage company will eventually get my house back, they can sell it and make lots of money. For now, I am a free babysitter for them, taking care of the house until home values go back up again. The mortgage companies are making out like bandits regardless of whether they get the house back next month or next year.

[AlmostAmos]

...The fastest way to transfer title is the DIL. As far as the credit report goes, a DIL or foreclosure will only show up in the public record section of your CR, the rest will remain IIB.

WHAT? I thought there would be no foreclosure on my credit if the loans were discharged in my CH7? Obviously, they have to foreclose to get it back into their name. The DIL would show up on my credit as well? It was/is my understanding that the only way this would happen is if my house would have been foreclosed on FIRST, then I filed CH7. Thoughts/clarification?

I'm NOT interested in paying a cent to stay in this house. I've been renting another for 2 months as my backup plan...

[tobee43]

if you listed your mortgage on your chapter 7 petition and it was discharged and foreclosure is after the discharge the foreclosure should NOT go on your cr.....

deed in lieu is always best....never a short sale...especially IF you are in a deficiency state...once that deed transfers over you are good to go for life!!! just make certain the deed in lieu is a warranty deed and also make certain you have a general release attached.

[frogger]

Give them their DIL and take their 3K.

[researchnerd]

I'd definitely take the $3k for the DIL. My impending foreclosure is also with Citi...I wonder if I could get the same deal? Could it hurt to call the lender's attorney and ask?

helpme2010, is this is the quote you're looking for?

Mr. Praline: Um...now look...now look, mate, I've definitely 'ad enough of this. That parrot is definitely deceased, and when I purchased it not 'alf an hour ago, you assured me that its total lack of movement was due to it bein' tired and shagged out following a prolonged squawk.
Owner: Well, he's...he's, ah...probably pining for the fjords.

Edit: I just looked through our recent paperwork from the lender's attorney, and we got something last week saying "we want you to keep your home." One of the options offered was indeed a DIL, but there was no mention of $3k. It did say we'd have to attempt to sell the home for 90 days first, which honestly, I am in no mood to deal with at this point. Arrgghh.

[helpme2010]

I'd definitely take the $3k for the DIL. My impending foreclosure is also with Citi...I wonder if I could get the same deal? Could it hurt to call the lender's attorney and ask?

helpme2010, is this is the quote you're looking for?


Edit: I just looked through our recent paperwork from the lender's attorney, and we got something last week saying "we want you to keep your home." One of the options offered was indeed a DIL, but there was no mention of $3k. It did say we'd have to attempt to sell the home for 90 days first, which honestly, I am in no mood to deal with at this point. Arrgghh.

researchnerd, your name does you justice. I love it, there is always somebody who knows a Monty Python quote and there always seems to be a use for a Monty Python quote!!! ahahahahahah Thanks