Home - Surrendering

[wtu]

Got my default notice from WF today. Should I call them and tell them I am surrendering and that I have no intention to bring my mortgage current or should I just move out on the day as planned and let them figure it out?

Based on how nasty they have been to me I really have no interest in assisting them in any way at all.

[justbroke]

Stay as long as you can. Wait for the notice of sale from the Sheriff and then get out. The longer you stay, the more money you can save up, since your credit is now impaired. You'll need the money for deposits of varying types.

That's just my opinion... I could be wrong.

(I didn't follow my own advice. I could STILL be in my house now, but no. I panicked and got a rental and spent $6K relocating to the rental (deposits and all).)

[TEW]

Stay as long as you can. Wait for the notice of sale from the Sheriff and then get out. The longer you stay, the more money you can save up, since your credit is now impaired. You'll need the money for deposits of varying types.

That's just my opinion... I could be wrong.

(I didn't follow my own advice. I could STILL be in my house now, but no. I panicked and got a rental and spent $6K relocating to the rental (deposits and all).)

thats what i am doing I will stay until them make me move. I have also told my lawyer i want keys for cash. It is very expensive to move so i will need all i can save living rent free.

[wtu]

Is it pretty easy to negotiate keys for cash with them?

[b_girl]

I would stay as long as possible if I were you...not only can you save money, but it also helps resolve the dilemmas about when you should shut off the electricity and when to stop your home insurance. There will also be no problems with possible vandalism and liabilities which accompany an empty house that is still technically in your name....all issues we are facing now since we have moved out of our home already but still have a month or so before we are considered in default. Course we're hoping to do a 'deed in lieu of foreclosure', which would have shortened the time we could have stayed in the home anyway.

[BROKENN]

What is a "Deed in lieu of Foreclosure" ? Is that different that a Foreclosure?

I am also surrendering my house and am wondering how that is done when you default.

Anything I do different? Say something else to my atty?

WTU, hang in there

[BKParalegal]

Deed in Lieu is where you sign over the deed back to the bank, so they don't have to go through the whole foreclosure. You typically see this in Judicial States where foreclosure takes longer and therefore it is more expensive for the bank.

Good Luck

[justbroke]

What is a "Deed in lieu of Foreclosure" ? Is that different that a Foreclosure

It's basically "surrendering" the home. It's a way to "give the house back". There is legal paperwork that you need to sign/file. The Bank provides all the legal documents to basically take the collateral from you. Most Banks won't do an ILO unless the house has been on the market for several months and has not sold.

Banks don't like Deeds ILO because in almost all States they can't file any defficiency claim (on the difference between your note balance and what they sell it for). (Note: I'm not going into the fact that in some States the Banks have no recourse to file deficiency claims.)

I am also surrendering my house and am wondering how that is done when you default.

Anything I do different? Say something else to my atty?

If you're surrendering in a Bankruptcy, they will proceed under non-bankruptcy law, by basically seeking to foreclose on your Property in court. When you prepare you notice of intentions (in chapter 7), your lawyer should ask you -- if s/he hasn't already -- what you want to do with secured property.

[BROKENN]

Thanks for the answers! I think I understand and my atty is surrendering the property.

Don't know what this state does or this mortgage co. So I guess we will see. The first mortgage company might break even on what they "show" on paper, but they will make money from actual principle, if that helps at all either.

My atty calmed me down yesterday Next week I will see him.

WTU, I don't plan on calling my co. My atty can if he wants. We are staying/leaving ie: staying into foreclosure but have a move date to start fresh My atty agrees.

[b_girl]

Deed in Lieu is where you sign over the deed back to the bank, so they don't have to go through the whole foreclosure. You typically see this in Judicial States where foreclosure takes longer and therefore it is more expensive for the bank.

That's what we're counting on...hopefully the bank will seek to cut their losses by working with us to shorten the process...we just want the whole thing over and done with in time to enjoy a quiet (and hopefully debt free) holiday season.

[wtu]

Thanks everyone. I may call them just to talk about getting cash for keys, but I'll do that after i get the acceleration notice from them sometime after 9/16.