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Here is my situation. stopped payment in 12/2010. In pre-foreclosure. Now trustee sale begins in June 2011. House listed for shortsale. Contact bank, option to deed in lieu was considered. Loan amount 100k, house worth 50k less, one mortgage, no liens, HOA current.
the spokeperson said I have 60 days to decide DIL bec it gives time for bank to check if house is ok and no liens, etc.
I need help to understand both pros/cons of a deed in lieu and shortsale. Also anyone know or had similiar experience. thanks.
Thanks 2bindenver. I decided to deed it back to the bank. It's also my understand that they might not even consider it if it doesn't fall in their guidelines. The bank also mention that if I have an offer, they will still look at it for consideration. They said better than foreclosing. the money saved from legal fees and trustee sales they would like to do without.
I still welcome more information as the bank said I could change my mind if I wanted to. I can't believe the bank I am working with so far have been understanding. I guess they know its really bad out there. Plus they don't lose out whether I deed in lieu or foreclose. They get their money one way or other.
A DIL is much cheaper for them and in the past, banks refused to do them, but they are much more open to that now. I've had two clients do the DIL rather than the short sale. Both of them chose to do the DIL rather than deal with showings and offers. For them it was less stressful to do it that way vs. the short sale route.
Ask them if they will pay you to do a Deed in Lieu. AKA, cash for keys. Be reasonable in your request - for example, moving expenses, security deposit on an apartment plus first months rent....
Maybe this can be a win-win for both of you. It really does save them a lot of money and time, at the very least for them. Plus you won't trash the house.
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