Foreclosure deed in lieu (for sale, rental, mortgage)

[techzone]

I need to move out of my 2 bdrms house. First, the house is too small for us. I live with my wife and 4 children. Children have grown up. I have to also have a room for my mom, who is very old and can not take care of herself. Also the house is far from my work. I can rent a bigger place, near my work for much much less.

I have defaulted already (4 months behind now). Foreclosure has been initiated by the lender.

I need to talk to the lender and see if I can do a "deed in lieu". I don't have a "finanical difficulty", but I have reasons to leave the house. Of course, needless to say, the house is upside down. I have put it out for sale for a while and there are no takers. This is single mortgage. Fixed 30 years rate. You know the typical mortgage. My question is as follows:

How do I talk to my lender. What do I need to tell them (I don't trust them by the way)? I have lost so much money on this house (remodeling, etc), but I have no choice now. I want to cut my losses and move on. Can I do this? Can I qualify for a deed in Lieu?

[JamesBoyer]

Originally Posted by techzone

I need to move out of my 2 bdrms house. First, the house is too small for us. I live with my wife and 4 children. Children have grown up. I have to also have a room for my mom, who is very old and can not take care of herself. Also the house is far from my work. I can rent a bigger place, near my work for much much less.

I have defaulted already (4 months behind now). Foreclosure has been initiated by the lender.

I need to talk to the lender and see if I can do a "deed in lieu". I don't have a "finanical difficulty", but I have reasons to leave the house. Of course, needless to say, the house is upside down. I have put it out for sale for a while and there are no takers. This is single mortgage. Fixed 30 years rate. You know the typical mortgage. My question is as follows:

How do I talk to my lender. What do I need to tell them (I don't trust them by the way)? I have lost so much money on this house (remodeling, etc), but I have no choice now. I want to cut my losses and move on. Can I do this? Can I qualify for a deed in Lieu?

Forget it, your lender is not going to go for that one. And on top of that you have already recked your credit. If you could pay, why did you stop paying?? Good luck renting anything, any landlord with half a brain will require a credit check. Most will not lend below a certain level. I would guess you are already below a 600 credit score, but once that foreclosure hits I but your credit score is in the 400's

Best bet for you is to ether start paying and stay, or get your butt over to where you plan on renting and rent something right now, before your credit rating makes that impossible.

Also if you get foreclosed on, look for it to be extremely difficult to get a new mortgage for quite a long time, say 10 years.

[techzone]

I stopped paying, because the mortgage company refused to even talk when I was current. Now they are calling me day and night.

I know my credit has been tarnished by this (It used to be excellent). The hill with the credit. I don't need credit to borrow anything. I never borrowed money other than the mortgage. I refuse to be a hostage to trying to maintain a good credit.

I even tried renting out the place for a while, which truned into a complete nightmare. And the rent was much less than the mortgage payment. So I was constantly loosing money. I had already dumped a lot of money into the house (remodeling, etc), with no good results (trying to sell it).

Finding a rental place is the least of my worries!!

I am walking away....

[tahiti]

you don't have financial difficulty and you stopped paying because the house is too small and you can't sell? am I reading this right?

i need to step away from the computer and let my blood pressure drop.

[imoapie]

Mortagage companies are not in the business of owning houses. In a foreclosure they have the right to go after you for the difference between what the house is actually sold for at the auction and what is owned, called deficiency judgement. Given your good financial standing don't be surprised if that happens. Off course chances of this are slim.

[MPBsr]

Talk to an attorney.

[techzone]

The situation I am in is considered a serious difficulty, although not necessarly a financial one. My wife simply won't stay in this house.
The reason why I am able to control my financial situtions,is not becuase I am rich or anything. It is just because I live will below my means.

Right now I HAVE to move. My family comes first. I tried everything I can to save the house, but it looks like it's a lost case.

[techzone]

What kind of attorney should I talk to?

[MPBsr]

Originally Posted by techzone

What kind of attorney should I talk to?

Call around and find one that 's an expert in this field. You need to protect yourself.

I know one in Central Jersey if you're having trouble finding one on your own.

[desertsun41]

The others are kinda right when they squint at you being able to afford the home yet chose not to make the montly nut.

But forget about that for a moment.

You have 2 choices, maybe 3:

Call the lender, tell them you want to do the "cash for keys" program. What this means is basicly a deed in lieu but you save a little bit of your credit score. What you do is tell your lender if they dont work with you then you will rape YOUR home, not theirs, of all the appliances, light fixtures, cabinets, fans, rugs, copper in the walls and so on...and sell it. Yes it is legal. But if they are willing to give you cash for keys you will promise to leave the house in red ribbon condition. You will have to sign something and the day you walk out that door a bank rep is there with your check to inspect the home. Generally Im hearing $1500 to $3000 offers which is perfect to get your life started again. If you raped YOUR home it could have cost the bank $50,000 to replace everything you took to resell not to mention $50K the cost of foreclosure.

Go google "cash for keys"

An all out foreclosure drops your FICO 300 points regardless of how many late payments you had. A deed in Lieu drops your score 100 points plus about 25 for each late payment.

Your other option is a short sale. Your market is still so so in NJ rather then non existant like in many other markets. You need to get a Realtor to list and they will list at way below its value. There are many bargain hunters out there but even if you receive a low offer the lender has to accept it first. Typicly this has been taking 6 months but you get to stay in the home. The theory is the bank should take a little bit of something rather then everything of nothing. But they dont see it that way. Few, very few lenders are even willing to talk to the borrower in any language other then pay now.

Your 3rd option, if you have $1500 is to call a Loan Modification company. Just google the key words. They practicly guantee they will get your mortgage modified or you dont pay. I know you said you want to leave. Thats ok but now at least you can rent the house at market price and be able to cover your montly nut.

If you have Countrywide, a new law takes affect December 1st where the mortgage company is forced by law to contact you and be on the one begging. They have to modify the loan in some fashion.

Whew........hope that helps.