We've been researching this since we found out we do not have to worry about the Capital Gains issue.
It seems, if we offer a DIL to our lender, it could prompt them to instigate Foreclosure against us any way. Evidently people have offered DIL with the threat/excuse they are filing BK and then don't actually file BK. So lenders will start Foreclosure as a CYA for themselves. We don't want the lender to start Foreclosure sooner than they woulda just because we approached them.
Also, seems voluntary DIL associated with BK is a sticky situation for Lenders, especially if there's any equity in the property. It can look like the mortgage holder is getting preferential treatment above the rest of the Creditors in the BK by accepting a voluntary DIL. I saw where there's a whole legal process involved including appraisals, is there a Real Estate sales contract on the property, etc.
Any one with any experience who might shed some light on this situation??
It seems, if we offer a DIL to our lender, it could prompt them to instigate Foreclosure against us any way. Evidently people have offered DIL with the threat/excuse they are filing BK and then don't actually file BK. So lenders will start Foreclosure as a CYA for themselves. We don't want the lender to start Foreclosure sooner than they woulda just because we approached them.
Also, seems voluntary DIL associated with BK is a sticky situation for Lenders, especially if there's any equity in the property. It can look like the mortgage holder is getting preferential treatment above the rest of the Creditors in the BK by accepting a voluntary DIL. I saw where there's a whole legal process involved including appraisals, is there a Real Estate sales contract on the property, etc.
Any one with any experience who might shed some light on this situation??