Deed in Lieu

[onepowerfullady]

I am in Chapter 7 that was converted from a 13. The auto stay has been lifted off of my house. I hired a loss mitigation service whom in the beginning was going to help me keep my home. My husband I did the math and decided not to keep the home, but to figure out a way to let the mortgage company have their property back. In talking with the loss mitigation service we decided to consider a deed in lieu. The loss mitigation service is in the process of talking with the mortgage company now so that we can try to get the ball rolling on that ordeal. I don't have any money to get the house ready for sale let alone get a realtor. I did not reaffirm the loan either. I just want to walk away from this and start my new life. I am trying to see if its better on me in doing the deed in lieu instead of the foreclosure... Do you all think that I am making a wise choice? I just wanted to let you all know that I live in the good ole state of backwards Mississippi.

[Minnymouth]

If you went from Chapter 13 to Chapter 7 and did not reaffirm the mortgage then just "surrender" the home to them in the Chapter 7.............. you should not have to sell or foreclose or anything.... just surrender the home with no balance due on it after its discharged.......
Did you have a lot of equity in the home where a sale would be wiser????

Bankruptcy, deed in lieu, foreclosure will all affect your credit about the same....

Whose idea was the loss mitigation service??? Remember they will get paid also...... somewhere by someone....

Save yourself a lot of grief and just surrender the home... and walk away.....

[onepowerfullady]

If you went from Chapter 13 to Chapter 7 and did not reaffirm the mortgage then just "surrender" the home to them in the Chapter 7.............. you should not have to sell or foreclose or anything.... just surrender the home with no balance due on it after its discharged.......
Did you have a lot of equity in the home where a sale would be wiser????

I have only had the place for three years so when you stack fees on top of fees all of the equity I had got ate up.

Bankruptcy, deed in lieu, foreclosure will all affect your credit about the same....

Whose idea was the loss mitigation service??? Remember they will get paid also...... somewhere by someone....

Yeah I paid them too. I specifically told them in the beginning that I was converting to a chapter 7 and they told me that they could help me and now they are telling me after I converted to a 7 that there is a possibility that they could not work a good deal for me. So then they asked me if I wanted to do a deed in lieu. I think that its a good idea for me to just surrender the house...too Minny.

Save yourself a lot of grief and just surrender the home... and walk away.....

So Minny, do I just call the mortgage company and ask where do I need to send the keys? How do I transfer the deed back to them?

[Minnymouth]

Do you have an attorney or did you file pro se????

If you have an attorney he can arrange it....... if pro se you will have to make the phone calls...... Be sure you talk to their bankruptcy attorney and not just the mortgage lender....

You really have not use of the loss mitigation service.......... you can submit a deed in lieu directly to the mortgage company if you want too...... or just surrender the home.....

If you surrender the home you will be able to stay in it until the stay is lifted and you are notified by the mortgage company to vacate.....

Your credit report will state "included in Chapter 7"......

In your state the mortgage company may have to file foreclosure proceedings in order to obtain the home back from you for resell..... (this I'm not sure about, each state is different)..... I stayed 18 months in my home before it was sold......unusual though.... and my home was seized by the Trustee for resell...... (no foreclosure).....

Hope I haven't confused you here with all this, some of it can be different from state to state....

Sometimes the best thing is to "walk away"...... and get a new start......

[onepowerfullady]

I have an attorney, but she ain't hitting on a hill of beans. I might as well have filed pro se because I am doing everything myself. I used her in my 13 and paid an arm a leg and she converted my 7, but it looks as if everything is falling on me to do. I owe her 100.00 more dollars, but she don't deserve that with the 2500.00 she has gotten out of us with the 13 and the 7. Anyway!!! LOL! I am going to send a certified letter to both her and their atty (the mortgage company) today. Meanwhile I need to be looking for a place right now! I don't know how fast this is going to go. Do you think they are going to give me at least 30 days to vacate the premises?

[onepowerfullady]

Wow. Novastar is my mortgage company too what a coincidence this is. I sent a letter to my lawyer and the Novastar's lawyer certified today to let them know that I am surrendering the house and how soon do I need to vacate the premises. I am looking for a place to go by the end of August if I can help it. I live in the state of Mississippi. If I am not mistaking I think that they are going to have to foreclose in order to get their property back. I appreciate you guy's suggestions and help. I am sure ready for this to be over with!

[onepowerfullady]

I appreciate your advice and I hope that I will not have an issue in trying to find me a place. Most people tend to not want to give you a chance in securing an apartment from them when you have a bankruptcy let alone a foreclosure going on. Well since the loan is in my name maybe we can see about getting an apartment in my husband's name. Who knows. Wish me luck and I appreciate your advice!