Deed in lieu ~ Should I agree to this?

[gohornsgo]

My Chapter 7 was discharged closed a month ago. I included my mortgage in the BK. I did not reaffirm the mortgage. The home is not yet scheduled for foreclosure. I want to move to Texas soon for a better job and do a deed in lieu of foreclosure. EMC is the servicer and they will give "moving money" if the deed in lieu is approved. The paperwork asked for last two paystubs, last two tax returns and hardship letter.

Why do you think they need this info. I just wanna do a simple deed in lieu and speed up the process. I think this alternative would help the bank by saving foreclosure expenses.

What should I do? I think the "moving money" is in the $3000 range. That would be nice but I am hesitant to give all their required financial info.

Thanks for any input!

[steelhands]

I agreed to a deed in lieu with bank of America, handled by REDC. I did everything they asked and still have seen no "move money". They will not return my calls and every call is to a machine. I am thinking about taking them to small claims court here in Memphis and see what they do.

[angles]

You also run the risk of exposing yourself to the deficiency. Sometimes banks include it in the verbiage in the contract you sign for a DIL, even though you included it in the BK.

The banks don’t do anything unless it is to their advantage so don’t play nice. If you really, really, really want to do this try going back and asking them if they will give you 4K in moving money and you wont sign until the contract has been reviewed by an attorney and you have the money in hand. I bet it costs them much more then the 3K they offered you to foreclose on the property.

[Phil]

Other than that possible money, DIL does nothing for you at all. Also, and I am sure someone more knowledgeable will know, but that money may be considered taxable.