Confused, Deed in Lieu realistic or no?

[speculate]

Is a DIL with Chase Home Finance with a primary mortgage and heloc realistic? Meaning, has anyone on this board in NY been successful with it?
The lawyer I spoke to says it is. I'm sure the lawyer will say anything is possible and try as long as I pay him. His fee structure is a flat fee to negotiate a DIL, and if he's successful with it, there's another rather large fee. Do I need to run as fast as I can from the lawyer or is there really a shot with DIL?

I'm not considering bankruptcy just yet. Been trying to short sale but no takers.

[justbroke]

Why not just pay one attorney, bankruptcy lawyer, and just surrender the home in the bankruptcy? Your bank itself should be able to discuss deed-in-lieu (DIL), a forbearance, loan modifications, short sales, and even principal reductions... without an attorney.

How much is this attorney charging anyhow? You do realize that DIL, short sales and foreclosures have similar impacts on your credit, right? The only thing good about a DIL (and potentially a short sale, if done right) is your responsibility for any resultant deficiency.

If you're considering filing bankruptcy, why even delve into this? Just wondering. As you can see, even short sales are almost futile.

[speculate]

My credit is shot already, from not making payments for 6 months, so at this point the further impact on credit doesn't bother me too much.

My debt is from my house not credit cards or other obligations. I was kind of hoping I can get rid of the possibility of a deficiency judgement without bankruptcy by way of short sale, DIL or just plain foreclosure with debt forgiveness. I wouldn't qualify for Chapter 7 right now so that's why I haven't considered it yet. I don't want to keep the house. If I read correctly, there is a cap on the amout of debt you can have to qualify for Chapter 13. No? Meaning, even if you have above average income but you have debt of some exorbitant amount, there is no realistic payment plan that will help you get back on track.

The attorney wants several hundred dollars to negotiate, but then if he gets it done, wants a fee of 2% of the mortgage balance on top of that, which is a lot. That's only if he gets it done, so I'm sure he'd be aggressive but it does seem like anyone's powers are limited when dealing with the bank these days.

Different lawyers and people and brokers all tell me different things and it kind of makes me weary of what to believe.

That's why I appreciate this board - real life experiences and help without someone constantly trying to sell you something.

[325Falcon]

I would run from the lawyer and talk to the bank yourself. Anything he can do you can do also.

[AngelinaCatHub]

It seems a no lose situation with this lawyer. You paid him for trying. He is not out. He gets lucky and you pay him again 2%. Does not seem like a lot if it is a dollar. Two cents. If it is a half mil???????? I'm not a math pro. You figure. 'Hub

[justbroke]

The attorney wants several hundred dollars to negotiate, but then if he gets it done, wants a fee of 2% of the mortgage balance on top of that, which is a lot.

Absolutely, positively, no deed-in-lieu is worth 2% of the mortgage balance. None, nada, zilch, nunca, nein, non, butt-kiss.

Wow.