Hello, I hope to get some advice here, so below is my story:
In May 2011, we had to move out of our house because my wife had to transfer due to her job to a different state. This put me out of a job. We were unable to pay for our house and rent in our new city. We tried to sell the house for the full amount we owed. We did not get any offers or interest in it by December 2011. I called CitiMortgage and spoke to their home owner's assistance department. I was told to apply to do a short sale. I was approved for a short sale in May 2012, we had a buyer interested, but he backed out. About a month and a half ago, I got my loan sent to the deed in lieu department. Finally today, I called and asked for a status update, and they said I was denied because the foreclose process has already started. I asked if they had a foreclose date, and he said no, but they can't approve the deed in lieu because of this. The foreclosure process started before I even tried to do a deed in lieu. He did say I am still approved for a short sale though, but I don't have anybody interested at all.
My questions are:
Why did it take them a month and a half to figure this out?
Isn't that what a deed in lieu is for, to avoid foreclosure?
Is there anything I can do now, I do I just sit back and wait for the foreclosure to happen?
Any help would be appreciated.