Upcoming Foreclosures

My investment property is facing foreclosure, will a Deed in Lieu help?

I've heard that if you write to the lender requesting a Deed in Lieu and they honor that, that you can essentially give them back the property without owing anything and without going into foreclosure. However, we've gotten a letter from their attorney saying they are starting the Foreclosure process, although they have set a sale date yet. Is it too late to try to get the Deed in Lieu in place? Is that really how the Deed in Lieu works? Oh and we don't have an attorney. We can't afford the mortgage payments obviously, so if we could just give the property back and walk away, that would be best. And as I explained in a previous question, we didn't sell because we would have had to pay closing costs and all the bids we got would have been 50K-80K short of what we owe, which doesn't help at all. Oh but Laney, I don't really want the property as I can't afford it. This would be counter productive. DeeDee- thanks for the info. We don't have equity, we just bought it over 1 year ago and so have just been paying on principle alone. ugh! This is really going down hill.... but thanks again for the info, it is very helpful!

Public Comments

1. If the lender accepts a deed in lieu, then you do not have to worry about a deficiency, but unless there is equity in the property, most lenders won't accept a deed in lieu.
2. what you do is call a lawyer and tell him you want the property. then you sell the home pay your bills and the lawyer. that is what i did. laney
3. It is my understanding that deed in lieu of foreclosure is only for Owner occupied properties and not investment properties. I would go a google search for the information but I was reading it myself yesetday and it said you must occupy the property. Call your lender you have absolutley nothing to loose at this point, and also send them a certified letter asking for it, if they say no you are no worse off than you are now
4. Contact the bank NOW. Whether or not they will take a deed in lieu of foreclosure is absolutely up to them. Whether or not they put anything on your credit record is up to them too. There are no "pat" answers to your question; the only way you will find out the answer in your situation is to talk to the lender.
5. It will not hurt to ask them to accept the deed. I do not think you have a very good chance of them accepting it, it would depend on the differance between how much cash they originally gave you and the present value of the property. But again, it does not hurt to attempt this or to ask for a short sale. A REALLY REALLY good real estate broker can help you negotiate the short sale, but not the deed in lieu. Because this is an investment and not your residence you can expect to have to come up with funds to cover any short fall. None of the government bail outs cover investment properties.
6. Hi, I used "Credit Solution" to settle my debt and avoid foreclosure.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here: http://redirx.com/?0g4c