Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for Walk Away

Deed-in-Lieu Request Denied, What Next?

Mortgage has been in default for almost 18 months. Hired a law/debt reduction firm to try and and negotiate a deed-in-lieu/consent forclosure. Mortgage lender is not willing to entertain that option now. Though that was an option they initially stated on paper that I could request. They are turning it down now because I did not try a reduced payment plan first. It was never stated in their written proposal that a reduced payment plan must be tried first before any other options would be considered. Anyways, I do not want to keep the property, it is a 40 year old condo that has not been remodeled in 20 years. Property will not sell. Valued at around $30,000. Still owe $123500.00. Should I just tell them to forclose. At least I can stop making the condo assessment payment every month and maybe I can make it in under the mortgage debt relief act before 12/31/2012, to taxes on the deficiency. Any advice/opinion is appreciated. Thanks.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 20 2012 - Mount Prospect
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (4)

Profile picture for bgraichen
I was kind of in the same situation with a rental property.  The bank won't do anything if it looks like you can still pay your mortgage.  You need some serious debt.  It may be too late for you to do a DIL though. They were probably foreclosing on you as you typed this up.  The Mortgage Relief Act was extended through 2013.  That will help you avoid the huge tax hit after foreclosure. I say screw the bank, they artificially inflated the home values.

I made a webpage describing what I went through with my DIL.  It was embarrassing in the end.  There is too much to type so here's a link if you want to read what I did.  Good luck.
[weblink deleted by Zillow due to spam.  Please refer to our Good Neighbor Policy for details.]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
March 01 2013
Get a law firm in ILLINOIS to help you with this. The last thing that you need is the bank coming after you for a deficiency judgement because most likely this will not be resolved by the end of the year. 

I know a law firm based out of Chicago that is very good and reputable that I can connect you with if interested.
[phone removed by Zillow moderator]

Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 22 2012
Profile picture for wetdawgs
"maybe I can make it in under the mortgage debt relief act before 12/31/2012"     While it would be nice, the chances of a foreclosure happening in six weeks is not likely.   As Sunnyview  mentioned,  You do need legal advice.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 20 2012
Profile picture for sunnyview
You need to get legal advice, but as a layman I would say that from a financial standpoint it is time to look seriously at walking away if the bank refuses to work with you.

It looks like there are deficiency judgements in your state, but they are filed in small percentages overall. You need legal advice about how to try to avoid one before you walk. It is a tough situation, but you are wise to make the call while the tax law benefits you. Consider all your options, make the call that will allow you to move forward financially.

At this point, I would not agree to the banks demand for a reduced payment plan. Too many of them in this scenario are refused at the end as long as the owner is able to pay and agreeing to one would cause you to lose your tax benefit that expires at the end of the year.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
November 20 2012
 
Related Questions
Seeking Info On Cartus Asset Recovery
Profile picture for Jon Wyatt
Latest answer by Jon Wyatt
June 05 2013 | 3 answers
  • Asked by Walk Away
  • In Mortgage
  • May 28 2013
Deed-in-Lieu Request Denied, What Next?
Profile picture for bgraichen
Latest answer by bgraichen
March 01 2013 | 4 answers
  • Asked by Walk Away
  • In Mortgage
  • November 20 2012
What can I do to get more (or better) quotes for my loan request ZR-FLGLSJR
Profile picture for Sean Cochran
Latest answer by Sean Cochran
November 22 2012 | 2 answers
  • Asked by user24308673
  • In Mortgage
  • November 12 2012
Would a lender perfer default over a short sale when PMI exists ?
Profile picture for shasta_steve
Latest answer by shasta_steve
August 13 2011 | 4 answers
  • Asked by Walk Away
  • In Mortgage
  • August 13 2011
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 883 Oakwood Ct, Des Plaines, IL Home For Sale
    883 Oakwood Ct, Des Plaines, IL 60016

     For Sale: $130,000

    • Beds: 2
    • Sqft: 1020
    • Baths: 1.0
    • Lot: 5300
  2. 11 N Stevenson Ln, Mount Prospect, IL Home For Sale
    11 N Stevenson Ln, Mount Prospect, IL 60056

     For Sale: $329,000

    • Beds: 3
    • Sqft: 1812
    • Baths: 2.0
    • Lot: 10125
  3. 1400 N Yarmouth Pl APT 313, Mount Prospect, IL Home For Sale
    1400 N Yarmouth Pl APT 313, Mount Prospect, IL 60056

     For Sale: $139,900

    • Beds: 2
    • Sqft: 1100
    • Baths: 2.0
    • Lot: --