Surrending home...does it go faster??!

[youngnbroke]

We will be surrendering our home (in WI) when we file for chapter 7 in a month or two, does anyone know, in general, does this go faster than a "typical" foreclosure?? Or does it go through the same process and could take MONTHS? This will be our last month of making payments and I just wanted to have some sort of time frame. I've read that it could take 6-9 months before the title goes back to the lender, but just wondered if it went faster for people who surrender? Thanks for ANY answers

[ssmdem]

We're doing the same thing - but I don't think it speeds things up at all. They still have the same procedures they have to legally go through.

[screentest]

Here in California my in-laws stopped paying 18 months before Wells Fargo (ASC) finally foreclosed and gave them a move-out date. During the process they filed chapter 7 and this stopped and delayed the foreclosure for about 2 months until the mortgage company was granted a relief from stay order.

This really dragged the process on; however living rent free was great for them. We finally moved them out this weekend and they pick up "cash-for-keys" tomorrow.

This chapter in their lives will finally be over and they can move on.

[youngnbroke]

WOW 18 months! Although i am looking forward to living "rent free" for a while, I just want to MOVE ON! I do have one question...might be stupid...but what the heck is cash for keys? I get the "keys" part...but what cash?!

I still have soooo much to learn about all this!

[screentest]

After the home is auctioned and title transferred, the new owner (the bank) will generally offer the occupants some options. In my in-laws case, Fannie May was the new owner and offered an option to either rent the home back to them for 1 year or $4000 cash to move out in 14 days, $3000 in 30 days and so on.

They wanted to move on so we took the cash-for-keys offer and moved them out this past weekend.

The process took so long because Wells Fargo kept extending the auction date. They finally sent it to auction on April 20th and we had them out this weekend. Pick up the check tomorrow and this final chapter in their BK/foreclosure journey closes.

[ssmdem]

Do you have any idea how much longer they could have reasonably stayed had they not taken the offer? I'd like to stay as long as possible in order to save up some money, but also would like to be out about 30 days before we're forced out.

[youngnbroke]

WOW. I had no idea that the "new owner" PAYS you to move out faster??!! Do you know if this always happen?! Although i want to save as much money as possible, I'm ready to get out and start over! I think the foreclosure process will be plenty of time to build up a nice savings....

I cannot wait to start this, who knew I'd ever be "excited" about bankruptcy/foreclosure!

[screentest]

Remember, the cash-for-keys offer comes after the foreclosure is finalized. It is a common practice among lenders to encourage a foreclosed homeowner to vacate the property in "broom swept" condition.

This offer, or relocation assistance as they like to call it, is incentive to encourage the homeowner to move without forcing an eviction on the former homeowner. The offer is also void if the homeowner removes and fixtures from the residence or damages the property in any way.

An eviction, if uncontested, can take up to 60 days after the foreclosure and cost the bank much more $$ than a cash-for-keys offer. Most homeowners are just happy to take the cash, return the property to the bank and avoid having an unlawful detainer filed on thier credit report.

We could have delayed the foreclosure much longer if we had pushed for a loan modification or requested a short sale package; however, we just wanted to move them on. It worked out best for everyone.

ST

[ssmdem]

What happens if ours doesn't sell at auction? It won't because our outstanding mortgage is way more than we owe. I know it reverts back to the bank then -- but I want to know the quickest way to get that title out of our name. I'm guessing it stays on there until the bank places the property up for sale and it gets sold - ???? I'm just ready to get this behind us so we can get started on a new more affordable mortgage as soon as possible.

If someone wanted this house, I'd be out of here tomorrow!! I just hate to see it get neglected, overgrown lawn, snakes in the neglected pool, etc. because it's not occupied - not to mention neighborhood kids trashing it - which is exactly what has happened to a house down the street that has sat empty for three years.

[screentest]

What happens if ours doesn't sell at auction? It won't because our outstanding mortgage is way more than we owe. I know it reverts back to the bank then -- but I want to know the quickest way to get that title out of our name. I'm guessing it stays on there until the bank places the property up for sale and it gets sold - ???? I'm just ready to get this behind us so we can get started on a new more affordable mortgage as soon as possible.

If someone wanted this house, I'd be out of here tomorrow!! I just hate to see it get neglected, overgrown lawn, snakes in the neglected pool, etc. because it's not occupied - not to mention neighborhood kids trashing it - which is exactly what has happened to a house down the street that has sat empty for three years.

Your house is going to go to highest bidder. It doesn't matter what you owe on it. The investor that currently owns your house is also most likely going to be the "new owner' after the auction sale. The balance of the loan is either forgiven or charged back to you as a deficiency. Depends on your state. This deficiency can then also be discharged in BK.

If you want to speed up the transfer of sale process then the only thing you could possibly do is contact the servicer on the mortgage and ask them what the requirements are for a "deed-in-lieu." This is the process where you voluntarily sign over the deed to the house to avoid the lengthy foreclosure process.

Not all investors will accept a DIL until you have met some basic requirements ie. attempted a short sale etc. Each investor has their own set of requirements for a DIL so I would check around for the info.

Good Luck.

[ssmdem]

I'm so confused. See, now I was told they rarely sell at the sheriff's sale because they have to start the bidding at what the balance of the mortgage is -- unless it's a case of the balance being extremely lower than what the house is worth, which my so isn't! And then at that point it reverts back to the bank.

Honestly, I don't care either way -- I'm just looking to get our names off this title. We're filing for bankruptcy and surrendering it in the bankruptcy so not worried about the deficiency. If they won't agree to a DIL, then we're stuck waiting for them to sell it? And if this ends up being the case, are we forced out during this time - or could we stay until someone actually purchases the home?

[spikelavende]

Hope and pray that Fannie Mae assumes your loan, they are the most generous with their Cash For Keys assistance. Be prepared to get a notice on your door, with instructions to call the real estate agent assigned by the bank and be prepared to move fast. The faster you can vacate the home, the more money you will be offered.