Deed in Lieu....

[fyi2]

week past 341 and the bank called to aske if we would like to avoid a forclosure on our credit and do a "Deed in Lieu of"

I thought if you included the mortgage in bk you only had it in the bk and you didn't have a forclosure?

[CreditCretin]

My brother did a deed-in-lieu a while back to avoid a foreclosure, on an 'investment' property he couldn't afford the mortgage on. (Gotta love those old no-doc loans.. ) Anyway it still shows up as a forclosure on his credit report with 2 of the three reporting agencies. I guess it is all in how it's filed.

[reeltrouble]

a deed-in-lieu (of foreclosure) is still a foreclosure. It just means you voluntarily sign the deed of the home over before the f/c proceedings are completed.

[CreditCretin]

a deed-in-lieu (of foreclosure) is still a foreclosure. It just means you voluntarily sign the deed of the home over before the f/c proceedings are completed.

That's what my brother found out. It was still better, overall, for him. If he had gone into foreclosure with the bank he would have probably had to file for bankruptcy. This way he didn't have to.

[fyi2]

what benefit would it have then for someone already surrendering the house in BK?

[gowiththeflo]

I heard the banks werent doing this because they have too many houses therefore too much liability. They would rather have your name on the title till its sold so if anything happens... in other words they won't take title even after a foreclosure or not foreclose for a long long time. How do you get the title out of you name then?

[fyi2]

Someone from the Bank (C.U.) called me to see if I wanted to do that?

[fyi2]

How long...

when does the Deed in lieu of foreclosure need to be done/signed
is it before the discharge or after or does it matter?

I need a couple months to save money

[lrprn]

when does the Deed in lieu of foreclosure need to be done/signed
is it before the discharge or after or does it matter?

I need a couple months to save money

fyi2, a gentle suggestion for you. All kinds of information about deeds in lieu have already been posted in the forums.

If you haven't looked for this information yet, then click the Search link above in the blue bar and then type in lieu in the Search Forums field. Keep the Show Threads option selected and click Go.

Hundreds of recent threads that include information about deeds in lieu that have multiple replies will be returned. Find the threads that look the most promising and give them a look because the information you are asking here is almost certainly there to find

[Trixie007]

The nice thing about a Deed in Lieu is that you decide when to sign. It's a pretty simple process, you sign, they record the document, and it's done.

[OhioFiler]

I heard the banks werent doing this because they have too many houses therefore too much liability. They would rather have your name on the title till its sold so if anything happens... in other words they won't take title even after a foreclosure or not foreclose for a long long time. How do you get the title out of you name then?

This statement doesn't make sense to me.

[LSUTiger32]

I am totally confused.....and I need to know because this will apply to me. If I file CH7 and IIB the home loan on a rental property will the bank still foreclose? I thought the BK killed the foreclosure.

[OhioFiler]

From NOLO's website

Foreclosure: The forced sale of real estate to pay off a loan on which the owner of the property has defaulted.

deed in lieu (of foreclosure): A means of escaping an overly burdensome mortgage. If a homeowner can't make the mortgage payments and can't find a buyer for the house, many lenders will accept ownership of the property in place of the money owed on the mortgage. Even if the lender won't agree to accept the property, the homeowner can prepare a quitclaim deed that unilaterally transfers the homeowner's property rights to the lender.

[OhioFiler]

"in lieu of" is defined:Instead of; in place of; in substitution of. It does not mean in addition to.

Instead of forclosure, In place of foreclosure, In substitution of foreclosure not in addition to foreclosure.

[gowiththeflo]

what i meant when I said the banks dont want the title is because the real estate market is so slow that they'd rather have your name and liability on the house then their own... so if someone falls in the pool, they sue you not the mortgage company. Can I sign a deed in lieu and record it without the signature of the mortgage company?