deed in lieu after ch 7

[cantwait]

Hello, I hven't been on here for quite awhile. the good news is our ch 7 went smoothly and we were discharged yeah! We reaffirmed the mortgage on our primary residence and are current. We had been renting out our former home but the last tenant left it deplorable and we dont have the money to fix it to re-rent it. We were letting it go and just received foreclosure letters last week. One of them was from the banks attorney & said that if we would consider a deed in lieu of foreclosure they would give us $2500. Does this seem possible? I would love to hear if anyone else has heard of, or done anything like that. Thanks

[mickeyme]

I have heard of cash for keys but don't know much about it. I did just read about the Obama plan offering $3K to borrowers who elect to do a short sales vs. waiting for foreclosure. I wrote a post to see if I hear anything. I hope my bank offers me what yours did...and if they do I plan to take it.

Who is your lender? and what state are you in?

[cantwait]

Im in Ohio and the bank is countrywide. Supposedly they are sending paperwork, so I'll you posted on what happens. I would love to receive anything!

[HHM]

My sense is, once they find out it is not your primary residence, they may withdraw the offer; however, no harm in calling them back and seeing if they will do the DIL for cash.

[BCA2009]

I wonder what it costs in legal fees and court costs to foreclose? Maybe the banks have realized it si cheaper to pay the debtor to do DIL than foreclose.

[ohiogal]

I have heard of cash for keys but don't know much about it. I did just read about the Obama plan offering $3K to borrowers who elect to do a short sales vs. waiting for foreclosure. I wrote a post to see if I hear anything. I hope my bank offers me what yours did...and if they do I plan to take it.

Aw, MAN!! I sold my house in a short sale in May!! Darn it, I want my $3000...

[cantwait]

Well, we're still checking into it. We received papers today (fed-ex) It seems to say that if it is unoccupied, "broom ready" there is no liens on it, and all bills are paid (utility etc) then we can sign these papers and they will give us $2500. So far so good. The small hangup I want to find out is we have to sign a paper that states we have consulted out tax preparer about any possible tax issues. We haven't done that and I want to make sure we won't owe taxes on the difference between the mortgage and whatever they sell it for. Other than that I think it's good! I sure hope so. My husband actually called them a few weeks ago and offered to do it (for free) we figured, why have them go through foreclosure when we weren't going to protest it. I thought we'd save them a little money and give them the deed and the keys. Hey, if we can get 2500 that's even better! I'll let everyone know what happens.

[cantwait]

I read somewhere that it costs between 6,000 & 8,000 for a bank to foreclose on a house. Maybe this is a better way for them? (It is for us!)