Deed in Deed in Lieu of Foreclosure/Cash for Keys offer after bankruptcy

[ana126]

Our bankruptcy was dissolved back in September. The first and second mtg. were dissolved during that time along with other debts.

The house is in the slow process of foreclosure. The sale auction is presently set for the second week of April.

We just received an offer for a deed in lieu of foreclosure & cash for keys, 2% of mtg, approx. $3,000 from REDC Default Solutions out of Plano, Texas, but with Bank of America letterhead - Bank of America was the mtg. lender.

How can we hand over a title if the mtgs. were dissolved in the chapter 7 last year?

My other question so far is the following

Do both borrower and co-borrower need to physically be in town, available at a certain date for a cash for keys procedure? We are social security recipients, since September living in Mexico due to USA cost of living issues. Besides our rental address here, we have a relative who is handling some USA mail - the letter arrived there. We can, of course, scrape together two tickets back to Washington State if it means approx. $3,000 in cash for keys. But will that be a must?

REDC Default Solutions in Plano, TX does not answer phones, only has a message machine. ;( B of A mtg. default dept. knows nothing of this letter, is not really helpful over the phone so far. ;(

The letter offer gives a deadline of less than a week to sign for a deed in lieu of foreclosure WITH the cash for keys monies offered. (!)

Can anyone advise or have been in similar situ?

[freshstartmi]

Just posting to follow this thread and see what others say -

[Mensa1]

REDC Default Solutions is an REO mgr. REO = Real Estate Owned (by lenders).
So REDC must be handling this for B of A; best guess. Make certain that they are, maybe by contacting B of A to verify.

No real need to be present in order surrender or sign a Deed. The paperwork will need to signed in front of a registered Notary. The lender may have specific requirements there and will advise. Often they may be able to arrange for you to go to a local title company, (not sure that they would have one in MX so you might need to go to nearest US title co), where you can sign the paperwork. Or they may just mail out the pkg to you and have you got to a Bank for notary.

Addressing your main question... you use the term "dissolved", which isn't accurate. The debts were "Discharged", which only means that you were personally relieved of any responsbility to repay them, now or any time in the fututre; they are GONE. However the Deed of trust survived the Bk because it is the instrument that secured the property to the lender. This gives them the authority to fopreclose even after the Bk which would give them clear tite to the property. Their alternative is to pay you for the Deed in lieu, aka "Cash for Keys". So you have no downside here and only 3K to gain, as long as you verify that REDC is the true agent for the bank.

Pretty BIG decision to leave the country and live in MX. You could no doubt write a book one day, based on the mindset and experiences moving out of the US to survive. GL

[Coldplay]

Our bankruptcy was dissolved back in September. The first and second mtg. were dissolved during that time along with other debts.

The house is in the slow process of foreclosure. The sale auction is presently set for the second week of April.

We just received an offer for a deed in lieu of foreclosure & cash for keys, 2% of mtg, approx. $3,000 from REDC Default Solutions out of Plano, Texas, but with Bank of America letterhead - Bank of America was the mtg. lender.

How can we hand over a title if the mtgs. were dissolved in the chapter 7 last year?

My other question so far is the following

Do both borrower and co-borrower need to physically be in town, available at a certain date for a cash for keys procedure? We are social security recipients, since September living in Mexico due to USA cost of living issues. Besides our rental address here, we have a relative who is handling some USA mail - the letter arrived there. We can, of course, scrape together two tickets back to Washington State if it means approx. $3,000 in cash for keys. But will that be a must?

REDC Default Solutions in Plano, TX does not answer phones, only has a message machine. ;( B of A mtg. default dept. knows nothing of this letter, is not really helpful over the phone so far. ;(

The letter offer gives a deadline of less than a week to sign for a deed in lieu of foreclosure WITH the cash for keys monies offered. (!)

Can anyone advise or have been in similar situ?

Just be careful who you are handing the keys to. I've heard that there might be scam artists out there. So please confirm with B of A. They have to have some info on this....call the foreclosure or bankruptcy depts.

Also,


I believe if the bank thinks that you have abandoned the property they will not offer you cash for keys. Cash for keys is offered to homeowners that are presently still residing in the home. It's an incentive for them to get out quicker and to leave the place clean without any personal belongings. If the bank finds out that you are not living there they will come and just change the locks and you will not get the cash for keys.

[freshstartmi]

Is there a way to get a bank to offer cash for keys?

[Coldplay]

Is there a way to get a bank to offer cash for keys?

You have to create the illusion that you are living in the home. If they believe the house has been abandoned they will not offer you any money. Contact the bank after or close to the auction date and tell them you are interested in cash for keys. It's cheaper for them to offer you that than for them to have to legally evict you. Good Luck.

[steelhands]

I sure hope REDC is valid for Bank of America as I have done the deed in lieu with them and still have no move money. I cannot now get them to return my calls, etc.

[ana126]

For Steelhands: REDC contact # & info

Steelhands, REDC was too slooow: if we could have made contact sooner we would be $2000 dollars up.

In March we signed the deed to REDC. I tried & tried & tried to get ahold of them. The numbers were invalid, no one answered a FAX, email didn't work. So frustrating!

I do believe they are valid for B of A. However, I believe they have so much business they are not in a rush.

Finally, a rep got a hold of us. I was in contact w/ her for hours and hours straightening things out. We were to get $2600 in cash for keys. Found out there was a lien. We could have had this removed quickly for $600.00 through our BK attorney, IF I could have contacted REDC in March or April OR, ideally, they would have contacted me!

You see, for a year our house foreclosure auction was put off, month after month after month.

But by the time REDC got around to contacting me (my attempts to contact them being futile)
B of A slammed shut the house auction on the May date.

Too late. My husband had even shown the house to the REDC auction people during May, a week before auction! Ready to give the keys. If only I could have gotten a hold of them in March to clear the lien, we would have $2,000. Also, that week may not have been enough time to process. March would have done it!!!

This may not help you but I'm going to give you the phone number of Sharika Wofford, the rep. who worked with us. She was really very nice. She gets, like, 150 voice mails a day...I think this is why it doesn't always work out.

Her number is 1-469-928-78115 It's a Texas phone number.

Her email is [email protected]

She may not be handling your house but at least it is a valid contact number & she might be able to direct you. You will probably have to try and try and try but eventually she will answer.

This may be of no help to you but just in case you can expidiate cash for keys before auction date & pay off any liens I am giving this info.

[Poorhouse64]

deed in lieu after BK

My bank will do a DIL with their attorney (who has a terrible reputation in CA as being a foreclosure mill).

The bank wants me to FAX them a letter granting permission to permanently change the locks. (The NOD only filed last month). They say they need to change the locks (house is vacant) in order to conduct a "broom-swept condition" inspection. (Isn't this granting them legal possession -- written permission to change the locks)

Then they might send us the DIL paperwork. There are no liens on the house now that I'm aware of.... but there will be soon.

After surrendering the house in BK, does it make a difference to my credit if it goes through DIL or foreclosure now?

What do you think? Thanks!

[dasmom]

After surrendering the house in BK, does it make a difference to my credit if it goes through DIL or foreclosure now?

What do you think? Thanks!

I'd be interested to hear what others think about this question...

Thanks

[tobee43]

I'd be interested to hear what others think about this question...

Thanks

we were advised by our atty, since our house was in the foreclosure process when we filed, (of course the stay stopped all the procedure), that, as long as we had listed the house mortgage AND surrendered the house at that time, ( the house IS the collateral for the mortgage), it would be wiped out after the bk was discharged.

it's 2 years later, the bank has NOT foreclosed, and thus far it only shows as IIB on our CR. now, of course since we haven't foreclose as yet, our atty did advise us, if it does show up AFTER the discharge (as the mortgage amount is discharged), then we could dispute with any reporting agency, the reporting of the "foreclosure...

since it hasn't happened as yet, i am only relying on what information our atty said. however, honestly, at this point the ONLY concerns i have, is, i'm not really caring IF a foreclosure is on our CR now...since after 10 years everything will be wiped clean. what worries me is, when the heck IS this bank is going to do it, and then WHEN will we have to fight to get it off because it will out lived the bk?

[Mensa1]

After surrendering the house in BK, does it make a difference to my credit if it goes through DIL or foreclosure now?

What do you think? Thanks!

Doesn't matter one bit provided that the mtg was included in your Bk and you receive a discharge.
You are from that moment forward no longer responsible for the mtg, and it will (or should) only show up as IIB.
The foreclosure should no longer show up as any type of negative. So foreclosure or DIL... no diff, because both are non-events to you personally.

[DebtEnder]

They only matter if you plan to purchase a house via FHA or conventional financing. Blocks it for 3 and 4 years respectively from date of DIL, short sale, foreclosure. There are other possible options however, but those are most common. It will not otherwise cause any change to your credit report