Hi this is my question what will be the next step if a Deed in lieu is not accepted by the lender ?

Question

i have to do a relocation to improve finacialy with a better job,the house has been in the market going a 1YR ,i try a short sale and still can't sell the house and my house value drop $75 ,0000 ,i havent miss a payment my credit score is good , so iam going to present a deed .. i need a back up plan if they say NO

Answer 1

If you can't sell and you can't "short sale" and you can't keep making the payments and they refuse to take your house back "in lieu of foreclosure" then you will have a foreclosure.

Well, I guess you could rent it out.

After a foreclosure you may be held responsible for the shortfall of money after the foreclosure sale.  I would much rather be responsible for the shortfall after a short fall- it would be a much lower amount of money (no lawyer fees added in).

Answer 2

DRAMATICALLY lower your asking price on your home so that you get mulitple offers now!

Ask the agent to show you all the homes that SOLD in your town within the last 30 - 60 days.

Look at the homes within 200 square feet of yours.  If your living space is, say, 1400 square feet... look at the homes from range 1200 - 1600.

Determine the average price per square foot.

Once you know the price per square foot... muliply that figure by YOUR square foot.

Once you have THAT price... subtract 10% of that on the calculator... and price your home at that level.

Make sure your home is priced LOWER than any other home within that square foot range, that's currently on the market.  

Buyers look for BARGAINS.  When your home is priced like a barigain, buyers will snatch it up.  Don't worry... the approval will need to be made by the BANK.

If the price is too low, the BANK will let all the parties know, and the agent working with the bank will find out what the bank wants.

Bottom line, is you need either MULITIPLE OFFERS NOW, or you need to make your home available as a TAKE OVER PAYMENTS.  Get a smart agent!  There is NO REASON for your home to sit on the market if it's priced to sell!  No way!  Good luck!

Answer 3

They are not going to take the deed under these circumstances, they would not have allowed a short sale either, you needed to be in foreclosure.

Answer 4

This is your problem the bank is completely in the driver seat under your fact pattern;  the bank is not going to just take a deed and loose 75K or say 120K based upon actual sale in this market and let you just walk away, Not the way it works

Your problem it seems you have means and assets to pay just at this point inconvenient, if so the bank is not going to even deal with you, and will not deal with you most likely in your situation until you are late with payments, period

So if you want to save your credit either rent for now and eat the difference or borrow some cash to lower the price way below the loan value,

Answer 5

You need to contact an attorney who handles real estate work in your area!  Sooner rather than later!