Deed in lieu in FL

Posted by LMG on September 24, 2008 at 10:41:11:

This is my case:
We purchased a Condo with 100% financing, interest only, we have 2
different lenders 80/20 (#1 fixed, #2 variable). The value of it is 100K
less than what we got it for and even though we have the money to pay
it, it is not going anywhere and we want to get rid of it. We have
another place to live that is paid for and it is not under our name. We
don't have any other properties, just about $25K in savings and two
cars, no credit card debt. We went to a real state attorney to look into
Foreclosure, the route he suggested which we have initiated already
was that he sent letters to both entities offering Deed in lieu. He
suggested not to make another payment on the property. We received
a letter from the #2 lender asking for a list of paperwork in order to
make a decision, the attorney told us to ignore it, he said they wanted
to negotiate and since we don't want that, we just want OUT. He
basically told us to STOP all payments (mortgage, association, taxes).
Here are my questions:
1. If we stop making all payments, Isn't this letter just a disguised way
of going directly into Foreclosure, why offer the DIL first?
2. Why would they accept a DIL if the property is upside down?
3. Should we continue paying the association fees while the process is
finished? Wouldn't that go into our credit report too, besides the
Foreclosure?
4. Should we still pay this year's property taxes? I'm guessing I don't
want to mess with the government...
5. Is this attorney guiding us in the right direction?

Sorry this is so long, but I see people here are very knowledgeable on
the subject.

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