Market Conditions in 45426>Question Details

Reggie Great…, Renter in Wadsworth, OH

my home will not sell in this market. What is a deed in lieu?

Asked by Reggie Greathouse, Wadsworth, OH Thu Mar 22, 2012

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7
Your agent needs to advise you ....conversly.....contact a REAL ESTATE attorney .
0 votes Thank Flag Link Sat Mar 24, 2012
Im Reggie and during a short sale process how low do you list your home. I have gone from 249k to 149K mls number 507176. There are no homes selling in the 45426 zip code. Any suggestions. this home is financed by Wells fargo, and I need an offer to get them to consider short sale. Im now 60k below what pay off is. Im upside down what are my options.
0 votes Thank Flag Link Sat Mar 24, 2012
Please contact your agent.
0 votes Thank Flag Link Fri Mar 23, 2012
Reggie, I looked up your listing and you are working with an agent. Please advise her you are potentially looking at doing a deed-in-lieu of foreclosure. All the best to you! Gina
0 votes Thank Flag Link Thu Mar 22, 2012
Hi Reggie,

You have, really, two issues - your home won't sell, and to mention a deed in lieu sounds like you've spoken with your lender about the house and loan.

The deed in lieu is a possible option when talking with a lender about a short sale or other method of returning the home to the bank or selling it short of what is owed on the loan. However your lender must be willing to accept a "deed in lieu" which is in essence a "deed in lieu of foreclosure." This is not legal advice of course since I am not an attorney but we are trained in Ohio to know what the deed in lieu stands for and what it means. If you are attempting to sell your home on your own, you're at a bit of a disadvantage because of fewer people being aware of the fact that your home is for sale. If you have an agent you are working with, you need to let your agent know you are considering deed in lieu because there are specific steps to this process that your agent will know about or can ask their broker about.

If I can help answer questions further (if you're not already working with an agent), please let me know at 937-623-9441 or ginakay.landis@gmail.com. Have a good evening, Gina
0 votes Thank Flag Link Thu Mar 22, 2012
Any home will sell in this market if the price is right. Dan is right, keep lowering the price until you get an offer that is acceptable. If you owe more than the home is worth, do a short sale. Do you very best to keep the payments during this time to minimize the impact on your credit and don't let anyone tell you you have to be behind in payments in order to do a short sale, it's absolutely untrue. You should also look your loan up on http://www.makinghomeaffordable.gov to see if you qualify for a HAFA short sale. HAFA short sales tend to go much more smoothly and get done faster. You may also qualify for a small payment for moving expenses if you follow the HAFA rules and cooperate with your lender during the short sale process. If you do, and you still can't sell the house, a deed in lieu of foreclosure is still an option, but one that is rarely exercised by the bank.
0 votes Thank Flag Link Thu Mar 22, 2012
Reggie,
It's a foreclosure that you don't fight. You just offer the deed to the lender so they don't go through the full foreclosure filing. The impact on your credit is the same, but it starts the clock ticking to recovery sooner.
If you are not finding a buyer start dropping the price regularly. If you owe more than it's worth, do a short sale. Short sales are generally less damaging to your credit and you can continue to live in the house while it's on the market.
0 votes Thank Flag Link Thu Mar 22, 2012
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