I hope by now Christine found some assistance and was able to go with an option that allowed her to save her home and was the least damaging to her credit. If there is anyone out there in similar circumstances you need to get educated on the options that may be available to you. I am the author of a book called Mortgage Walkaway Options. It has helped many people to get educated and understand the options to foreclosures and walking away.

In the book my co-author and I provide many links to counselors, hotlines and lenders, advice on how to speak with your lender, foreclosure state charts and legal explanations, and a plethora of relevant information, all in an easy-to-understand presentation. Best of all, since this is an ever-changing and constantly growing topic, we have a dedicated update website for purchasers of our book. We continuously update this site with new information, new programs, new options, great articles and analysis of all the above. You can choose to download the book in the privacy of your home or you can order a hard copy from our site. Please visit http://.MortgageWalkawayOptions.com. Please feel free to email us if you have any questions--our contact information is available on the site.

Get a lawyer. They can address for you the ramification$ of each scenario. Ask neighbors or co workers for a referral, and if they don't deal specifically with distressed property options, perhaps they can recommend a lawyer who will. The financial ramifications vary from one alternative to the next- presumably, all short sale real estate agents provide these possible future financial obligations to those in this mess, but legal advice is paramount right now for most.

Christine, please keep us informed of how you are progressing. There may be other suggestions depending on how much assistance you have received since you first wrote on October 9th.

Hire an attorney and get a good realtor who has done short sales. Don't throw away 1000 to some scam. You can get the same information from a realtor--- for free.

Christine,

A Deed In Lieu is nothing more than a quicker foreclosure. Why are you looking to go with that option? Have you considered a short sale? You need to speak with a real estate agent who has actually handled short sales and in Ft. Myers, Florida. You have answers all across the board. Please take a minute and give me a call.

I rank #4 in our entire MLS for agents listing/closing short sales this year.

Yours in Success,
Susan Milner
239-218-2229 http://www.The-Extreme-Team.com

Hi Christine,

My co-worker had a situation with a foreclosure date of about 17 days if i'm not mistaken, when the foreclosure was stopped. I referred her to a company with an Attorney-Assisted Loan Modification Program and they were the ones who have helped my co-worker. Currently this company found some more grounds to sue the lender and they are in the process of doing that. As of this time, the family is still living in the house for almost 3 months now since the foreclosure was stopped. So, try to find companies who do the same thing in your area, or I can ask the company if they can do the same in your area. If you would like to contact me, you can reach me by email at grace@SalienteHomes.com or at my cell, 818-648-8558. Good luck and God bless

Sorry to hear about your situation, Christine. You can get some of that help you need for free. The US Dept Of Housing and Urban Development (HUD) says certain criteria must be met to be permitted to pursue a Pre-foreclosure Sale or Deed in Lieu. The following is quoted from HUD documents:

"(1) You must be an owner-occupant, occupied, no “walk-aways” or investment properties. (2) Your mortgage must be in default as the result of a documentable involuntary loss of income or unavoidable increase in expenses. (3) You must contact a HUD-approved Housing Counseling Agency before making a commitment to a particular method of dealing with your mortgage or financial problems.

Owners are required to list house with a licensed real estate agent. If, after a “good faith” effort to sell the house and minimize the lender's loss, an acceptable purchase offer is not obtained within the allotted time (ends 30-60 days prior to auction), the lender will usually accept a deed-in-lieu of foreclosure.

A deed-in-lieu is less desirable than a pre-foreclosure sale on a homeowner’s credit record, but is looked upon more favorably than a foreclosure auction. It is a "last resort" option used only if the pre-foreclosure sale fails. Owners are advised to seek professional legal advice on deed preparation and the possible consequences of voluntary foreclosure by deed-in-lieu."

HUD-approved counseling is free online or over the phone, and available in English and Spanish. The Hope hotline is 1-888-995-HOPE. Their website is http://www.995hope.org. The online version takes about 45 minutes to complete. By the way, they provide the lender with 3rd-party verification of the seller's financial hardship. That alone goes a long way toward getting a short sale or deed-in lieu approved. Wishing you the best from your neighbor in Lehigh Acres.

Best regards, Tom

Christine... I wish I could say you were the only one. At least your bank did "something".

Please go to my web site http://(www.VickyChrisner.com) - click on News You Can Use, and scroll down to the April postings. There are several links and organizations listed there that can help prevent foreclosure. If none of that works, have you considered a short sale? Read the blog post below and decide if it's worth looking into. If you'd like to consider that, and need a referral to an agent in your area, please feel free to contact me directly. (vchrisner@kw.com 703-669-3142).

Lastly, do not pay anyone a fee to help you lose your house, unless it is a success fee (like an agent would get for helping you negotiate and CLOSE a short sale). You can lose your house all buy yourself and keep the $1000.

You seem so sweet. I am very sorry this is happening to you.

Remember, God never said life would be easy. He said it would be worth it.

Have faith.

Christine, I'm not sure exectly what your situation is as you are not telling the whole story and I don't know who the bank is, but a deed in liue of foreclosure is the worst thing you could do when there are other options available to you. For one there is the short sale option and 2 is a possible banckraptcy. I sudgest you consult an atorney and a realtor to find out what your options are. Good Luck and God Bless.

Hi Christine:

My suggestion is to find a Realtor who is experience in short sale and who wants to do short sale to help you.

My current short sale client explored various options before deciding on short sale, include in lieu of foreclosure . Both walk away, in lieu of foreclosure have more negative effect on your credit rating than short sale.

Looking at the Walk Away Plan you mentioned, interesting thing for me is that there is nothing which says you can get your house back. The things they guaranteed to do is to charge you $695 and give you a 'customized plan' within 10 business days for you to go and negotiate with your lender. Or if you are being foreclosed on, you can stay in the house a bit longer and get some money from the Lardner.

If it does not work? No worries, they will 'guarantee your money back' if you file a claim. NO where in there to guarantee that they will negotiate with the lender, help you do short sale, get your credit back. etc. They guaranteed a customised plan.

I can sit here, charge you $695 and give you a plan in 10 days. If you don't like, I will give you your money back. How does that sound?

I would not waste that money and will go directly to somebody to start helping you with a short sale. Like I said, my clients did all that research and decided short sale is the best way to go.

But do find a Realtor who is willing to invest the time (a Realtor who does not follow up with lenders in the short sale process is a guaranteed failed short sale) and who is knowledgeable about the process (same comment).

Best,
Sylvia Barry
Marin Realtor

Steve--What is the point of your tirade? Are you just trying to pick a fight so that your earlier mistake is forgotten? Fine. The blog post you initially mentioned is not the world's only source of financial or real estate information. It was incomplete and did not mention short sales.

I will agree with you, that yes, paying someone $1000 to help you get foreclosed on is one option, as is shooting yourself in the foot. Life is all about options. I'm sure there are lots of short sales in many communities, and I assure you that there are a lot more than 29 short sales in Seattle and surrounding areas, LOL. Real estate professionals don't use Trulia to research properties--We use other resources that provide accurate information (unlike your buddy's blog).

While you have no idea what the depth of my experience may or may not be, I am confident that I know a bit more about our topic than you, or even your wise blogging friend. Thanks for your input.

Alright Patrick, try this experiment (and my apologies to Christine for somewhat hijacking your question):

Pull up Ft Myers on Trulia so you have all home listings. Expand the search options tab and add the keyword "short sale" (in quotes). End result? 1,361 listings with that phrase.

Try the same with Seattle. 29 listings with that phrase (and most of those say 'Not a short sale') Try it with any city you work with.

Ft Myers is well aware of the short sell process -- plenty of people trying it. Even so, Ft Myers/Cape Coral leads the nation in foreclosures. Your experience with a couple short sale transactions in a non-recourse state is of questionable merit here. I suppose it can't hurt to try a short sale, but if I were Christine I sure as hell would have an attorney and CPA involved as well less I get blindsided by a bank on a potential recourse loan.

1-888-995-HOPE (4673) I believe if you will call this number, you will get serious help You can also go to http://www.HopeNow.com and get information to help you move forward. You may even be able to find a way to re-finance, if that would help. God Bless you and your family.

Our company works with this person, and he can point you in the right direction without a charge. The problem right now is the type of loan you had, if it was an '80/20' or an '80/10/10' the primary mortgage holder will work with you but the 20% mortgage holder doesn't have a reason to walk away - and most of the time, with nothing. Most likely you will have to come up with some money to get your 'walk away' Anyway - this person Hugh Rogan is very good. He does this across the country and was the Key Note Speaker in CT at a Bankers and Attorney Seminar I attended. We have used him since the 80's, he is much respected in the industry and is not a scam kind of thing, and he is the real deal. My attorney sends people to him all the time to do work outs.
HMR CONSULTING
Hugh Rogan
(636)458-2731
(636) 754-0505 (Fax) hughrogan@sbcglobal.net
P.O. Box 493 Wildwood, MO 63040

Since you want to proceed with a Deed in Lieu then I recommend you spend the $1000 on a real estate attorney that will negotiate this action with your lender. Please read the following information provided by Wikipedia that clearly explains the process.

"In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntarily and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair market value of the property.

Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations."

Give it up Steve--I don't need to read a bloggers explanation of short sale procedure as I've represented both buyers and sellers of these properties. Instead of just having an opinion about it, I have a lot of actual experience in every aspect of these. Yes, it does take longer -- Which gives the seller more time in the home. If a competent negotiator is working with a lienholder on a transaction such as this, there will generally not be a foreclosure sale. The key is to price the home correctly. I don't work anywhere else in the country but in my area, but I somehow doubt there are absolutely no buyers in Fort Myers right now.

PS - as to 'Mish' not knowing about short sales.. that's not the case. Read the link below where he basically spells out the same flaws in the short sale process that has me wary in this case. Basically the process takes far too long for someone this far along into foreclosure, and banks aren't accepting what they should.

Florida is a recourse state, it's quite possible her mortgage isn't of a non-recourse variety. Under no means should Christine simply walk away without having someone assess her mortgage and ensure as limited an impact as possible. Admittedly the name of the service sounds shady, and they probably portray a more rosy outlook than is realistic (particularly with regard to credit) -- but in theory a company could find efficiencies in serving high-foreclosure regions. Such appears to be their game plan by focusing on CA, FL, NV and AZ -- all fitting the profile.

A short sale would be preferred. However, given the timeframe explained in the original question and the unreal volume of foreclosures in the region -- how likely does a successful short sale seem in advance of a foreclosure? Honestly? It may well be setting the stage for an inevitable foreclosure on one's own terms is far better than competing with a thousand other short sale candidates hoping to find a buyer in a flooded market -- via an avenue that boasts notoriously poor closing rate and exceptionally long sales process -- until one day the bank forecloses on their terms.

There's not enough info provided to give truly accurate advice. I still say, with the caveat of try other resources first, that if foreclosure seems inevitable... dropping a grand to have a company that specializes in the process guide you through it could be money well spent.

Steve--While I applaud your allegiance to a blog, even a "respected" one--It's an opinion fest, and while they can often be great sources of information, facts are another matter, and will ultimately determine what happens here. That your "respected" blogger apparently has never heard of a short sale speaks volumes about his worth as an expert in real estate matters. That he would advise someone who is clearly broke to pony up $1,000 to what some people would call a scammer (I'm not debating "walkaway" in this post) strikes me as bad advice.

If anyone would like to "walk away" from a mortgage, I do suggest a short sale instead. If you still want to "walk away" and have a foreclosure on your record, here's how to do it. 1. Stop paying the mortgage. 2. Don't seek assistance. 3. Don't talk to a Realtor about a short sale. 4. Just move out. Make sure to take the appliances and copper wiring with you. That's it! Oh yes, Please send me $1,000.

I agree with one thing that was said - DO NOT pay anyone to help you Walk away. You can walk away with out anyone's help. I am amazed at some of the other answers you are getting. It sounds like you have done all you can do within the system and at this point it is fruitless to worry about your credit rating. I think you arIt sounds like you are worrying about keeping the roof over your head and staying in the house that you love. Governor Crist just signed legislation to help homeowners in difficulty. Contact the Governor's office and ask if they can direct you to the right department to keep you from losing your home. I use to work for a Governor in another state and every governor's office has a constituent liaison or staff that help taxpayers get to the right department. The important thing is that you get the kind of help you need NOW. Banks and lenders seem to have let you down and although a real estate agent may be able to help you with a short sale none of us can keep you in your home. Have you been served papers yet? Is there a Lis Pendens? If you need information about the recent Florida legislation go to my website in the Services area and check out Florida Homeowners Updates. Prayers to you and your family in this tough time.

No ! Do not pay anyone any $ for any work to help you out of your problems, Short Sale is a good alternative, with out totally ruining your credit, That said ,Short sale also has some other hidden issues, any funds you are have to have paid (the difference between the bank owned note vs. what you got for the property, are determined by the IRS as potential earnings, so be prepared to pay taxes next year on any forgiven debt!
Just something to keep in mind while making a decision! But dont pay anyone for any help, its all scams
Get A Real Estate Professional involved!

Yeah Patrick... no need to listen to one of the most respected economic blogs out there. Here's a link to an article in your hometown newspaper that quotes him, talking mortgages and such (of course you have no interest in that, not when you have Lawrence Yun to spread sunshine). He's regularly quoted in WSJ blogs, IHT, etc. But Christine should definitely disregard him as a shill who knows nothing.

Clearly the best bet is to hire an agent (shocking!) to push for a short sale... in Ft. Myers FL, a.k.a. "Foreclosure Capitol, U.S.A.", no less.

Walking away may or may not be the best option. It's your final option if all else fails. Again, check those other resources first. But if all else fails you'll need to get some actual legal advice and understanding of the process before you do so. $1000 for that service doesn't sound like a bad deal. If you found an attorney ** very well-versed on the issues ** you could conceivably get a consult for a bit less.

Christine
I would be honored to refer you to a top Realtor in your area that can assess your situation. You need someone that knows the market, shorts sales, and foreclosures. There is no obligation on your part. You can contact me via my Trulia profile.

Sorry to hear of your dilemma.

It may be time for you to tap into your 6 month emergency cash reserve savings. Or maybe you can get a second job to make ends meeet. Good Luck

Hi Christine,
Phil was right in calling FLASH first. I was shocked to find that banks do not like doing deed in Lieu; but as you have found they don't. Contact a local attorney I can recommend Sylvia Heldreth 239-542-8899. If she can not help you she can put you in the right direction. Local attorneys and title companies will help you negotiate with the bank. Do not pay anyone $1000, this is a scam and you will be worse off. If you would like me to put you in touch with a title company I use in Fort Myers, I would be happy to. Please give Sylvia a call though I am sure she will help.
Best of Luck,
Nancy
nancy.doyle1@comcast.net http://www.nancydrealtor.net

I'm writing this to try to stop Steve from spreading possibly damaging and incorrect information.

First of all, I don't know who "Mish" is, but I suppose anyone with free time can set up a blog and call themselves an expert. That's great!

However--It seems "Mish" is simply shilling for the walk away folks, who I'm sure are very nice but clearly are making money by helping people get foreclosed upon. "Mish" offers 3 options for people like Christine: Workout, Bankruptcy or Walking Away.

Workout: The lender works with you to restructure the existing mortgage.
Bankruptcy: Huge mess.
Walking Away: Essentially, you pay these people to help the bank foreclose on you--Which, I assure you, they can do on their own. (Other scams include "rent back schemes" and other ways to get in big trouble quickly).

What wasn't mentioned is a SHORT SALE: This is when you work with an experienced realtor and/or short sale negotiator (it doesn't cost you anything out of pocket). They list the house for sale and sell it at a price that's less than what you owe. Typically, you have no out of pocket costs, not even closing costs. Yup, it goes on your credit, but not as long and not as severe as foreclosure (or deed-in-Lieu).

I highly recommend that you try two avenues:

1. http://acorn.org is an outstanding nonprofit organization that is highly success obtaining workouts ... I have interviewed many people who were on the brink of foreclosure and received help from this fine group! See the link below for examples.

2. Do not overlook the possibility of working with a good consumer protection attorney. You will probably be able to get a free consultation ... check out the National Assn. of Consumer Advocates http://naca.net.

Good luck!

Christine,

I am sorry for your frustration. I do deal with and help many people in your unfortunate circumstances.

There are a couple of ways to go.

1) If you live in the house and you want to stay, under affordable loan terms of course, send me your email address and I will forward a list of possible sources of help. All are free, nothing in it for me, no additional spam and no annoying phone calls.

2) A short sale, we help you get your house sold and your bank forgives the difference. There are some credit issues for you in this method, but not as bad as a foreclosure. We have to get together for a consultation on this. The consultation is free, and again, no spam or further follow-up unless you wish to proceed with this alternative.

3) Deed in lieu or you just walk away. That puts a foreclosure on your credit report. This is pretty damaging for a very long time.

Those are the best offers to help that I can make.

I hope one is suitable.

Tom Bernardo, Realtor, GRI
239-560-6702
tombernardo@earthlink.net

By all means, try the (free) resources listed by other posters first.

If you're still in an unresolvable position, internet pundit Mish (whom I've grown to respect reading his stuff) gives the "You Walk Away" plan a decent review (see link). Might be a valid option if you've exhausted all other resources.

Most likely your best option is a short sale. If you need a referral to an agent who can help you, let me know. Do NOT pay anyone $1000 in advance to help you. You will be $1000 poorer by getting their "help" and will be sitting in a foreclosed home.

In general, the companies that advertise "Walk Away from your home", and require you to pay them anything to help, are primarily scams.

If you're in the position where you're ready to walk away from your home, you need to talk to a Real Estate Attorney. Spend you money there... do not buy into those websites.

I'm sorry you find yourself in that position, but please don't exacerbate the situation by losing $1,000 to a company that charges you to do things you could do yourself for free.

If you are unable to work out a plan with your bank, you have the following options:

1) Deed in lieu - You said you didn’t want to do this.

2) Sell (Maybe a short sale) - You will need a Realtor experienced with short sale negotiations.

3) Bankruptcy with a repayment plan that will allow you to keep your home.
You will have to qualify and need to speak with an attorney.

4) Stay in your home until it forecloses.

Phil has provided you an excellent referral to the Flash Hotline. I definitely suggest that you follow through with that suggestion.

I also suggest that you evaluate if you want to sell, or may consider it. If so, reach out to a few Realtors who are experienced in short sales, if you suspect your home value is less than the liens against the property. I answered a question earlier today with tips to locating professionals experienced in short sales.

http://www.trulia.com/voices/Foreclosure/How_do_I_find_an_at…

Best,
Deborah Madey - Broker
New Jersey and Florida

Hi Christine,

I am sorry to hear about your situation.
Have you called FLASH? Florida Attorneys Saving Homes
HOTLINE: 866.607.2187
If you get no satisfaction there, I would try a local Ttitle Comapny.
Failing that, call Mara Shaughnessy who is a real estate attorney in Lithia, Fl (not far from Tampa) at
813-657-6700.

Pleae keep us informed of your situation.

Phil