# Marital Debt Resolution - Deed-in-Lieu of Foreclosure



## LivingAgain (Jun 12, 2013)

Due to employment cut backs for STBXH, and the fact that I had to move out to avoid exposing my kids to the circus that is his affair  and he now pays me child/spousal support, we are waaay behind on the mortgage. He hasn't made a payment since December.

Currently we owe much more than the home is worth. It is up for Short Sale but the chance of it selling is next to nil. There are complicated septic issues on the property and no buyer wants to deal with it and/or no lender with approve a mortgage to buy...

Bank is asking us to consider Deed-in-Lieu of Foreclosure and I am wondering if anyone has been through this process.


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## vi_bride04 (Mar 28, 2012)

Oh I hope there are some good responses - I may need an alternative to foreclosure depending on how the next couple of months go and if my ex doesn't make the payment in 11 days..............

Yay stress


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## Why Not Be Happy? (Apr 16, 2010)

speak with an attorney (a real estate attorney) and get your options, etc..


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## LivingAgain (Jun 12, 2013)

I have no money for an attorney. My brother helped me pay for my divorce attorney.

I am living in an apartment with my two kids, holding down a menial retail manager job with low pay  I can pay all my bills at least but have next to little left over.

Hoping someone has had experience doing it by themselves with the bank. My thoughts are that if it doesn't work, worst case is foreclosure, which I am betting happens in the end.

I am NEVER SHARING FINANCES with ANYONE EVER AGAIN! LOL


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## 827Aug (Apr 27, 2008)

Oh, boy! I've been down this road. Unfortunately, I ended up losing my house and I had more equity in it than the bank. My bank wouldn't deal and they were down right dishonest.

My house had only 10 feet of back yard. One septic tank was on my family, as was the well. You would think they would have wanted to deal. Not at all. They found a sucker to buy it last month--yep, a 3400 sq.ft. house with no water and only partial sewage.

Do you have another piece of property to swap for your house? I offered the bank a tract of land worth more than my house at mediation. They initially accepted the offer, but then reneged on actually doing it.


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## LivingAgain (Jun 12, 2013)

No other property owned.

I know the bank is going to give us the run around on it.

Right now we are dealing with the short sale through a mediator - a go between us and the bank so they make sure all the i's are dotted and t's are crossed with the paperwork.

I am afraid if we go out on a limb on our own to do the Deed-in-Lieu of Foreclosure, the bank will find a million reasons to say no and they will foreclose.

But then again, what have I got to lose?? House will never sell and end result will be foreclosure anyway...

Sigh....


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## 827Aug (Apr 27, 2008)

I guess I'm a little confused. A deed in lieu of foreclosure means that you are going to give a "deed" to other real property you own.

Are you really wanting to keep the house? A neighbor was so upside down on his farm and house, that he just turned it over to the bank. He walked away, so to speak. 

You most likely qualify for help with a new loan on the house. The acronym for the program is HAMP (I believe). Although I was eligible for the program, my bank didn't participate in the government program. A lot of people have been helped by it in our area though.


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## LivingAgain (Jun 12, 2013)

THis is the website the bank directed me to:

Mortgage Release™ (Deed-in-Lieu of Foreclosure) : Fannie Mae

They did not ask us about other properties. They know we don't own any other property!

We do not qualify for any of the new loans. STBXH makes too much money at this point. Unfortunately, most of what he makes is swallowed up by his CC debt, a 12% car loan (!), support payments and $$ to woo the OW, I guess.

He's living it up - no mortgage and gets to live there scot-free while both our credit scores plummet....

I do not want the house!! I moved out...the septic issue is horrible. Nearly non-functioning cesspool. No plumbing on second floor. It's unsellable....


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## 827Aug (Apr 27, 2008)

LivingAgain said:


> THis is the website the bank directed me to:
> 
> Mortgage Release™ (Deed-in-Lieu of Foreclosure) : Fannie Mae
> 
> ...


Oh, in that case, I would look into Bankruptcy. You can file without your husband and start fresh. I can't blame you for not wanting the house! Losing my house hasn't been so bad. No more house payments or rent, no more over-priced house insurance, no more property taxes, and no more $400 per month power bills. Major win for me!


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## one_strange_otter (Aug 26, 2008)

We are having to let our house go as well. We both moved out into separate apartments in a town an hour away. The house is unsellable unless someone is getting it from the bank for .25 on the dollar somehow. Foundation cracked so bad I've got 1 inch gaps in the brick outside and now the pipes under the foundation have started breaking and clogging up to the point I had to open the clean out valve so to be able to flush one toilet and basically it backs up and spills the sewage into the back yard. can't afford to fix the foundation....can't afford to fix the plumbing. we are just walking away from it. Right now we are moving everything out to storage units before letting the bank know. No clue how fast they might go change the locks on us or something.


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## Pluto2 (Aug 17, 2011)

The only real benefit of deed-in-lieu of foreclosure is that you avoid foreclosure, and don't have a hit to your credit. If the house is unsellable, it would offer you some credit protection. I haven't been through the process myself, and don't know your bank. If they raised it, they are considering it since it will save them tons in legal fees as compared to a foreclosure.


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## vi_bride04 (Mar 28, 2012)

Well my ex sent me an email saying he is moving at the end of July and I can have the house and do whatever I want with it.

He has not made June payment so unless I make it in the next 5 days my credit will start taking a hit. Oh I will have to make July too. I talked to my lawyer, there is nothing that can be done to him legally.

I need a place to live by June 7. I found a rental but have not signed a lease agreement. I am thinking of moving back in and not making the mortgage payment to save some money. But that isn't until the end of the month. I may have found a renter to make the mortgage payment for a year. Who knows. I have no idea b/c I don't know the condition of the house. And I really don't think my ex will work with me on seeing it before he moves out. 

I really have no idea what to do and have about a week to make a decision. This is unfvcking believable!


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