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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Demonstrate the need... Posted by Ward-CA- on January 11, 2004 at 3:56 AM In Reply to: Deed in lieu -- is this my solution? posted by Wisemer on January 09, 2004 at 11:27 PM : Hello, I have a house, which has been vacant for 4 months, and I've tried to rent it, sell it, anything. It is in immaculate shape, but it hasn't moved. Although payments are not yet late, but I am financially strapped and cannot make this month's payment or any future payments. I would like to approach the bank and ask for a deed in lieu. I owe $107,000, no junior liens, and the appraisal is about $114,000. But property values in the neighborhood have gone down. My question is, since I haven't been living in it for 4 months, would the bank even consider a deed in lieu? If the bank knows I haven't been living there, would I get in trouble? I have a conventional owner-occupied loan. Could the bank make me liable for any deficiency when they sell it? I'm in Georgia. Thanks. ========================= Wisemer, At this point the bank's not aware of your financial plight since you're current on their loan. Usually they'll need an actual demonstration of your financial distress in the form of slow pay or no pay on their mortgage payments before they give credence to your inability to pay. I wouldn't worry about your non-occupation of the property. If they're being asked to take a deed in lieu of foreclosure, it's a plus that you've already moved out. Now all you have to do is not make your next payment and then call your lender about 2 weeks later explaining your situation and offering to deed the property to them in lieu of foreclosure. And make the point that your offer to deed the property to them in lieu of a foreclose is conditioned on their promise not to seek any deficiency thereafter. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hello, I have a house, which has been vacant for 4 months, and I've tried to rent it, sell it, anything. It is in immaculate shape, but it hasn't moved. Although payments are not yet late, but I am financially strapped and cannot make this month's payment or any future payments. I would like to approach the bank and ask for a deed in lieu. I owe $107,000, no junior liens, and the appraisal is about $114,000. But property values in the neighborhood have gone down. My question is, since I haven't been living in it for 4 months, would the bank even consider a deed in lieu? If the bank knows I haven't been living there, would I get in trouble? I have a conventional owner-occupied loan. Could the bank make me liable for any deficiency when they sell it? I'm in Georgia. Thanks. : ========================= : Wisemer, : At this point the bank's not aware of your financial plight since you're current on their loan. Usually they'll need an actual demonstration of your financial distress in the form of slow pay or no pay on their mortgage payments before they give credence to your inability to pay. : I wouldn't worry about your non-occupation of the property. If they're being asked to take a deed in lieu of foreclosure, it's a plus that you've already moved out. : Now all you have to do is not make your next payment and then call your lender about 2 weeks later explaining your situation and offering to deed the property to them in lieu of foreclosure. : And make the point that your offer to deed the property to them in lieu of a foreclose is conditioned on their promise not to seek any deficiency thereafter. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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