Will a trustee allow a deed in lieu of foreclosure on surrendered property

[busbis]

WE are in a 13 and currently have 1 property being foreclosed upon due to us surrendering. We have another property being surrender, but the mortgage company is having a hearing in late May to lift the stay although the plan has been confirmed. My husband and I are filing for divorce and want this behind us so I was thinking about asking our atty to see if the mtg company who hasn't started the process would be interested. Is this type of thing allowed by the trustee or easy to do in a bk?

[lrprn]

Since you've filed Ch 13, your trustee controls your financial estate, including the properties. He/she will have to give permission before any deals can be discussed with the second property lender.

Frankly there's no advantage to the lender to give you a deed in lieu 0- they are getting the property back through your surrender in the bankruptcy. Also since you are surrendering the property, there's no benefit to you either since there's no indebtedness to relieve. A deed-in-lieu is as bad as a foreclosure on your credit anyway.

In case there's something specific about your case that we don't understand, why did you think a deed-in-lieu with your second lender was a good idea to attempt in your situation?

[busbis]

The first lender started the process early on. The 2nd lender filed for a releif of stay, but the trustee wanted to know the value of that property before he would grant. We submitted our tax bill showing the market value and now the 2nd lender has a hearing for the relief of stay scheduled for late May. I figured the lender is wanting the property and to save cost we could offer a deed in lieu if the trustee would grant.

[busbis]

my atty finally called back, the answer is NO.