I am getting ready to ask the lender for a deed in lieu of foreclosure.

Asked by Luna, Miami Beach, FL Fri May 1, 2009

Because, i am a few month behind with hoa, mortgage. Shortsales aren't moving in our building because
of to many foreclosures. (110 out of 204). Renting doesn't cover it and roommate wouldn't work out since
it is a studio loft. My question is in deed in lieu, do i have to pay condo fees past due and proptax? I got
laid off and don't have enough income. Can they take my car away which is paid for? I have no other debts
but the mortgage.

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Keith Manson-…, , Milwaukee, WI
Sat May 2, 2009
The situation you are in is difficult and hard to deal with. However a Deed in Lieu is the last option a bank wants to accept. The reason that they banks accepted a Deed in Lieu in the past was to say time in the foreclosure process so they could start marketing the property sooner. Right now the bank is in no hurry with taking more reos! They want you to try to sell the property or do try to modifiy your loan to get it resolved. All you can do is call the lender tell them the situation, try to get another job and then try to modify you loan or sell your property.

Facts about a Deed in lieu: There can not be other outstanding liens. The condo dues need to be current, taxes need to be reasonably current, property needs to vacant and broom swept condition and for credit score purposes and the ability to purchase another home it is treated the same as a foreclosure. The hit on your credit score will be 200-300 points and you will not be able to purchase another property for 5 years.

They can not go after your car. However, depending on your type mortgage and lender they can sue for a deficiency ( the difference between your mortgage and value of property when it sells). It is best to contact your lender to understand what they will be doing.

Keith Manson
First Weber Group
Certified Distressed Property Expert
Greenfield, Wisconsin
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The Hagley G…, Agent, Pleasanton, CA
Fri May 1, 2009
I have not seen a lender accept a deed in lieu of for a while. Short sales are not selling in your building because they are overpriced. Find a short sale Realtor and make them price your condo 10% below the lowest priced comparable home in your building.

Get it into contract, and even if the lender counters, it buys you more time in your home.
Web Reference:  http://shortsalesheep.com
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