Tough to tell exactly....however this is my best guess.

Sounds like the house was lost at foreclosure.
Deed in leiu is when you sign over the house to the bank without forcing them to foreclose.
Some banks will do this, some will not. If you did not sign anything in front of a notary, this sounds
like a foreclosure, not deed in lieu.
I always think this is better as it is less costly for you and the bank for a myrid of reasons.
It still goes on your credit as a foreclosure, but you are more in control of the process.

The bank is now free to sell at whatever price they think they can get for it. Even at $125,000, they probably won't clear much. They will have to pay realtor fees and closing costs, foreclosure costs, court fees, attorney fees, taxes, and others. You are actually responsible for not only what you owed, but all these costs as well.
Now in Texas the banks don't often go after someone for the deficiencies, but they could. (This is my understanding, but no personal experience.).

Probably easier said than done, but try to let it go now. That house is gone and out of your control now. It can happen even to the best people. Look at people like Ed McMann who perhaps faced the same circumstances as you. Best thing to do now is start working on your credit again, start saving, and start looking forward. There is life after foreclosure....you may just need more money down and have excellent credit, but it can be done.

deed-in-lieu is same as foreclosure and it will show as foreclosure in your credit. Now, the amount you owe is all depends on whether your loan was recourse or non-recourse. If it was non-recourse then they cannot come after you but if it recourse and it sells for lower than what you owe, they may send it for collection if there's no other arrangement. Consult with real estate attorney.

It is hard to answer your question without more specfic details. But normally a deed in lieu (DIL)would not be accepted by Chase or any other bank that late in th foreclosure process. For a bank to accept a DIL there would have to be no title issues and the property would need to be vacant and in broom cleaned condition. There should also be a agreement between the mortgagor and the bank. Given the information, it appears that the property went to foreclosure sale and Chase completed a evaluation of the property and determined the value is higher than it was listed. The bank will look at value and not debt owed.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield, Wisconsin

A "deed in lieu" of foreclosure is assigning the house back to the bank/mortgage company which lent the money to the mortgage holder. Their are risks, but it does not "usually" (thought it could) show up on your credit, except for the late payments. For more specific, check also with your broker.