Re: Deed-in-lieu
Posted by njdave on June 24, 2003 at 06:25:20:
In Reply to: Deed-in-lieu posted by Susan on June 23, 2003 at 22:47:10:
It's very rare for a mortgagee to ask for a deed-in-lieu of foreclosure. They'll usually do anything before accepting a DIL. My guess is that the mortgagee simply read down a list of possible nonforeclosure alternatives.
I would guess that the mortgagee will encourage your Mom to list the house for sale at it's as-is, fair market value and sell. If anticipated proceeds from sale aren't enough to cover the mortgage, they'll probably consider accepting less than they are due (short sale).
However, if your Mom's lender is to consider accepting a DIL, they'll want to first ascertain 1) your Mom's financial hardship, and 2) the home's value by sending out an appraiser, or a real estate broker for a Broker's Price Opinion (BPO).
If they determine that accepting a DIL is in their best financial interest, their lawyers will draft the paperwork. Your Mom will sign, pack, and move out.
Tell you Mom to ask for some $$$ for moving expenses, and perhaps her first month's rent.
