My husband and I are going to file for BK in the near future and we know we can't keep the house. Has anyone ever done a deed in lieu of foreclosure?
We're going to tell BOA (when is in question) that we are definitely going to have to walk away if it comes down to that but I'm hoping they might do this as an alternative to foreclosure.
Full Version: Deed in lieu of foreclosure
I believe that BofA is going to require that your payments are up to date and that you have the house on the market for at least 90 days. After this prerequisite has been satisfied, THEN you can begin the request process. They claim it takes approximately 90 days to complete assuming that the investor agrees to it. So you are looking at keeping payments up for 6 months.
Frankly, I don't see any point in playing their game if you are considering taking BK7 anyway. Better to do it sooner while you still have decent credit than later after you have managed to collect a bunch of late pays.
Also, if you are considering going the route of a Died In Lieu, start off with the understanding that you are going to need to negotiate better reporting from the lender than a foreclosure. Negotiate a better reporting grade and get it in writing. Otherwise, there is little to no incentive for YOU to go this route. This only helps the bank.
Frankly, I don't see any point in playing their game if you are considering taking BK7 anyway. Better to do it sooner while you still have decent credit than later after you have managed to collect a bunch of late pays.
Also, if you are considering going the route of a Died In Lieu, start off with the understanding that you are going to need to negotiate better reporting from the lender than a foreclosure. Negotiate a better reporting grade and get it in writing. Otherwise, there is little to no incentive for YOU to go this route. This only helps the bank.
magiccredit - you should read the TOS before posting. Soliciting is not allowed. Especially the nonsense you are spouting. Read the TOS, then write to admin@creditboards.com about your ability to post.
QUOTE (caffeinekid @ Oct 15 2009, 12:32 PM) 
I believe that BofA is going to require that your payments are up to date and that you have the house on the market for at least 90 days. After this prerequisite has been satisfied, THEN you can begin the request process. They claim it takes approximately 90 days to complete assuming that the investor agrees to it. So you are looking at keeping payments up for 6 months.
Frankly, I don't see any point in playing their game if you are considering taking BK7 anyway. Better to do it sooner while you still have decent credit than later after you have managed to collect a bunch of late pays.
Also, if you are considering going the route of a Died In Lieu, start off with the understanding that you are going to need to negotiate better reporting from the lender than a foreclosure. Negotiate a better reporting grade and get it in writing. Otherwise, there is little to no incentive for YOU to go this route. This only helps the bank.
Frankly, I don't see any point in playing their game if you are considering taking BK7 anyway. Better to do it sooner while you still have decent credit than later after you have managed to collect a bunch of late pays.
Also, if you are considering going the route of a Died In Lieu, start off with the understanding that you are going to need to negotiate better reporting from the lender than a foreclosure. Negotiate a better reporting grade and get it in writing. Otherwise, there is little to no incentive for YOU to go this route. This only helps the bank.
I agree. I'm assuming that you owe more than the house is worth. I don't see the point in doing short sale or deed in leiu if you're definately filing for BK, unless you'll be doing CH13 (not sure how the mortgage would be handled in CH13). If you're going CH7, once you file any foreclosure proceedings are halted. After your are discharged, the trade lines on your credit for your mortgage will be "Included in Bankruptcy". If you know you're going to give up/lose the house, you may want to consider stopping making mortgage payments, dependant upon timing. Talk this over with your BK attourney if you already have one, or get a few consultations and gather your information.
Hope this helps.
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