Called Bank - Deed in Lieu

[nioka]

My chapter 7 was discharged as of 7/14/14.a

I received a letter from my mortgage company requesting I contact them regarding a loan modification or Deed in Lieu.
I made the call today. I explained my situation with their rep and told her why a loan mod. was not a good option for me. I asked about a Deed in Lieu and informed them I thought there was a second mortgage. I was told they could not comment on the second mortgage until they did a title search but initially she said there is nothing showing.
She advised to to send a letter requesting a Deed in Lieu with my reasons for the request. She said, if approved, it could take between 60-90 days to complete.
I would like to be out of this house before the dead of winter.

Does anyone have any advice on the issue?
Thanks.

[nioka]

I am surprised that there are no posts.

Has anybody had any experience in a Deed of Lieu?

[nioka]

I talked to my attorney and he said to go ahead and send the request for Deed in Lieu. He said if the bank makes an offer he will go over it and advise at that point.
He also said that since my bankruptcy has been discharged it is to the banks advantage to offer a Deed in Lieu. He also mentioned I might be in this house for years before they foreclose but there is no guarantee. The bank in TN could also have me out of here on a foreclosure in 90 days. I told him I want this thing over with and to get on with my life. The sooner this house reverts back to the bank the better for me.

[nioka]

I got an answer from the the bank and not what I expected. I was told to make the request and the bank would get back to me with an offer. Instead I got a package, "We'received your mortgage assistance request." This package is an inch thick and is loaded with forms. One form wants me to disclose my bank accounts and others request more personal information I don't want to give them.
My attorney said the bank would jump at the change to do a DIL as they can save money. It doesn't look like that to me.
I am not sure if I want to call them again or just let it go and sit here until the foreclosure happens.

I used to worry about getting a rental with a foreclosure and bk but after six months of talking to landlords and rental agents I learned the only thing they are interested in is if you have the security deposit, rent, and a job or income to pay for it.

[justbroke]

Many banks require the same disclosures (income, savings, retirement accounts, stock, bonds, real and personal property holdings, etc) for a Deed-In-Lieu (DIL) as they do for a Modification. I am not surprised by the package that you received. Many of the banks are severely, well, clueless when it comes to properly processing requests. What's not so funny is that if you were to fill out that (modification) package and send it in, you will find that they are likely to not do anything. Making it even more hilarious, or not so hilarious, is that they'll then say that they "lost" the pcakge and you have to send it again.

Such is the state of modifications and DILs.

As you know, there is no way to expedite foreclosure and the only way to, perhaps, have the ownership change is via the DIL route or short sale. Have you considered a short-sale?

Personally, I'd stay as long as possible. If you can save your money over the time they actually foreclose, whether it's 90 days or 900 days, you "may" be better off. Maintain the property, pay the HOA dues, and relax. In many cases, this is exactly what the lender wants you to do when there are HOA dues!

[LadyInTheRed]

That is consistent with what I have read about the experiences of others. If I were in your place, I would send them another letter saying that the mortgage has been discharged and you are willing to execute a DIL if they offer you compensation to do so, that you will not fill in any of their forms and that if they do not want to offer a DIL, you will wait for them to foreclose.

[nioka]

Thanks for the posts.

LadyInTheRed,

Even though my attorney contacted all my creditors and bank of my bankruptcy I still had to send a copy of my bk discharge to the bank. I thought I spelled out the DIL clearly when I spoke with the bank and in my follow-up letter, but apparently not.

Justbroke,

Thanks for you insight. Short sale is out as the RE market is dead where I live. Other than foreclosure a DIL is the other option.
My attorney said the bank would jump at the chance. Well, that didn't happen.

The bank gave me to the end of the month to respond. I think I will wait until a few days before and call them and do has LadyInTheRed suggests and offer them a DIL with nothing and if not tell them to foreclose. Other than that, as Justbroke said, simply wait for foreclosure and save my money.

[Drazil65]

Stay and save the money, build up that savings/emergency account. We had no issues at all renting a really nice townhome with a private landlord. No reason for you to be in hurry to leave and actually you will regret it as the bank will probably be in no hurry to foreclose so enjoy it! Its an opportunity to really build up savings and one you will probably not have again.

[nioka]

Drazil65,

When I first started my bk I was very concerned about finding a new place to live. Since they I have read many posts, such as yours, and realized that finding a rental is not going to be the problem I thought it would be. I also contacted some landlords and rental agencies and learned that they are more concerned about a prospective tenants ability to pay the rent and having the initial funds to move in than a bankruptcy or foreclosure.
I think I may just keep my mouth shut, pay the HOA fees and utilities, and wait for the foreclosure. The trustee at my 341 told me the same thing. He said I could be in this house for three years and save a lot of money.

[LadyInTheRed]

Drazil65,

When I first started my bk I was very concerned about finding a new place to live. Since they I have read many posts, such as yours, and realized that finding a rental is not going to be the problem I thought it would be. I also contacted some landlords and rental agencies and learned that they are more concerned about a prospective tenants ability to pay the rent and having the initial funds to move in than a bankruptcy or foreclosure.
I think I may just keep my mouth shut, pay the HOA fees and utilities, and wait for the foreclosure. The trustee at my 341 told me the same thing. He said I could be in this house for three years and save a lot of money.

nioka, I am so glad to read that you are ready to settle in a save your money for as long as you can!