Opinion on DIL vs Short Sale?

[hteep123]

I am stuck and not sure how to proceed. I would like your advice. My ch 7 asset case has been discharged but not closed. I have a townhouse that was included in the Ch 7 and I would really like to get it off my plate. The HOA fees are a pain in the patootie and I have moved out of state. It has been standing empty in very good condition on the market for 18 months.

I have had 1 short sale offer that went all the way to close, but the bank (Nationstar) wanted more than the buyer was willing to pay. The bank wanted $70k while the comps in the same complex are closer to $49k. The buyer walked away. The real estate agent would like to keep it on the market and says he has a couple of people interested.

My bk lawyer suggested a Deed In Lieu of Foreclosure, but that it would be best if I started the paperwork sooner rather than later (while my bk is still open). She said she would get the appropriate paperwork sent to the bank to start the process.

So my lawyer thinks a DIL is the best option and the REA thinks the short sale is the best option. I just want out of this house and the HOA, utilities, and insurance that I pay every month. Your thoughts?

Thanks!
Heather

[keepsmiling]

This is a no brainer.
If you can get the DIL, jump on it and run away as quickly as you can!!!!

[Pandora]

I agree - DIL if you can get it!

Fingers crossed!

[Drazil65]

DIL for sure but the banks are not exactly willing in most cases to sign a DIL so it may not be an option. Of course the real estate agent wants a short sale, they get a piece of the action that route. Try the DIL but do not hold your breath unless the bank approached you about doing a DIL its higly unlikely the bank will sign in most cases. Good Luck.

[AngelinaCat]

I fail to see why the bank wanted 70K and the comparable properties were valued at 49K. Of course the 70K is probably what the mortgage is, and the bank doesn't want to take a loss. But if the bank refuses to cooperate when there IS a buyer at hand, and they end up with ANOTHER foreclosed property on their hands, they are losing out anyway.

That is just me rambling thoughts off the top of my head. I know almost nothing about mortgages, so cannot offer any advice one way or the other. But I do and to wish you good luck on whichever option it ends up being.

[bcohen]

I fail to see why the bank wanted 70K and the comparable properties were valued at 49K. Of course the 70K is probably what the mortgage is, and the bank doesn't want to take a loss. But if the bank refuses to cooperate when there IS a buyer at hand, and they end up with ANOTHER foreclosed property on their hands, they are losing out anyway.

Come on now, everyone knows that banks don't think that way. Most likely the bank isn't planning to foreclose until the property value has increased significantly. After all, why should they foreclose now, and be stuck paying the HOA, insurance, property tax, utilities, etc? From the bank's point of view, they'd rather stick the homeowner with those costs for as long as possible, and foreclose years down the road. That's what a lot of banks are doing around here, when it comes to property in a HOA.

[lrn]

hi
after foreclosure and auction with no bid, are we still responsible for paying the amount of money in the court foreclosure?
I fail to understand something.
I don't want to choose bankruptcy, have too many businesses.