Deed in Lieu worth it or even possible?

[laurannm]

We have two mortgages, first with Citi and the other with First Horizon. Both were discharged in Ch7 back in 2008 and neither were reaffirmed. We have decided to walk away and relocate to a different state. My plan is to rent something for now but eventually buy another house down the road (possibly).

I understand that I wouldn't be eligible for another mortgage until at least 3 years after foreclosure has completed, so I was wondering if a DIL or short sale (or some other option) would even be possible and worth it to get our names off the deed quicker?

Thanks!

[memama]

Our attorney suggested doing a quitclaim deed when our bankruptcy is closed to get our home out of our names. You might want to speak with an attorney on this, as DIL can be really tricky!
Our friend tried to do a Deed-in-Lieu just a few weeks ago and was ultimately denied because he left a garden hose attached to the house! The rest of the home was immaculate! They are really, really picky which seems strange because I would think it would be cheaper for them and much quicker to agree to a DIL and just get the process over with. Either way, talk to a professional

I hope you get some other answers, as I'm very interested in what people have to say

[Drazil65]

Hi, we found that the only thing a DIL process did was to stall/delay the foreclosure process. Had we not tried to do one there is a chance the foreclosure could have been complete by now. BOA was horrible to try to work with and kept losing documents, asking for the same docs over and over and finally after 5 months of jumping through hoops they denied the DIL and now the foreclosure process has started over once again. They kept promising it would all work out and we kept giving them documents, called just about everyday to stay on top of things, was transferred from employee to employee and the right hand never knew what the left hand was doing (so we had to explain our case over and over), it was exhausting. The short sale process was 10 times worse just to lose 2 buyers because BOA took too much time to get back to everyone, it was a mess.

Now we have decided to just let the foreclosure go through the process and hope for the best. Now the phone is rigning off the hook with BOA trying to get us to modify, we told them NO, please foreclose!!! Silence on the other end of the phone. So now we wait but this time we are not jumping through the hoops and making daily phone calls to them. It will foreclose when it does and therre is really nothing left to do at this point. We did not pay the taxes so the bank paid that and I guess eventually they will want to try to sell it so they will foreclose.