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    AdyM's Avatar
    AdyM Posts: 1, Reputation: 1
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    #1

    Jun 2, 2008, 04:39 AM
    Deed-In-Leu of Foreclosure
    Due to my separation from my soon to be ex-husband, I'm in a process of foreclosure with my mortgage company, they are asking for some documents that I don't feel it is safe to give them away, Taxes and bank statements, I have a refund from my taxes this year... (not the incentive), can my mortgage company take that money (from bank and tax refund) from me? And what exactly it is a due-in-lue of foreclosure... that will help me?
    Aah... I'm in Florida...

    AdyM
    :confused:
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
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    #2

    Jun 2, 2008, 05:03 AM
    Deed in leu of foreclosure would be great for you if they are going to do it. It means you sign the house over to them and they don't foreclose to take it, doing that does not destroy your credit report.

    But if a company does anything other than a foreclosure, short sale, deed in leu, or some other thing beyond getting all of their money and/or foreclsoure, they will want proof you can't afford to pay them, they will want to know you have no money to pay. So if you got a large refund, they may want to know why they were not paid, and they may decide not to be nice and helpful.
    Loan_Guy's Avatar
    Loan_Guy Posts: 83, Reputation: 6
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    #3

    Jun 2, 2008, 08:35 PM
    AdyM,

    If you do a deed-in-lieu, make sure you negotiate with the lender to have your credit report cleared of negative information. Many people sign their home over to find out that the late payments, etc. still show up on their credit and it is very damaging.

    A typical foreclosure costs the lender between $30,000 and $40,000. If you are being nice and "giving" them the house as opposed to making them "take" it, the least they could do is work with you.

    It would be nice if they would report "paid as agreed".

    LG

    PS. The lender is going to want to see proof of financial hardship. You really should provide it to them if you want to make this work.

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