Deed in Lue Process

[CWMATT]

Don't have a lot of time to go into the entire story. I did have a quick question though. I have all my required paperwork over to Countrywide since May, tried a short sale first, they didn't except, now going the deed in lue route.

I have been trying to sell my home by owner. It was never listed. I tell this to the reps that I speak with on the phone when they ask that I send over my listing agreement or proof that I have it listed for sale. I tell them that it is for sale by owner and that it isn't listed on the MLS.

Do you think that this will hurt my chance of the deed in lue going thru?

Any questions and/or comments are appreciated. I wll be back online in a few hours and can go into more details if wanted.

Thanks

[schwefls]

Welcome to our forum CWMatt:

I wanted to stop in say hello and welcome you to our fourm. By days end someone will be reaching out to you to address your questions and provide you with some sound advice/suggestions.

[CWMATT]

Thanks for the welcome!

I have been lurking for a while and know how helpful and informative this site can be.

[Cat Damiano]

Matt,


Welcome to the forum and thank you for joining.........

Do you have one loan or two?

[CWMATT]

I have one loan @ $375,000. I was an A-paper borrower, verified income, assets, put 20% down, although I did get a 30 year fixed with 10 year interest only. The house is in South Florida, one of the hardest hit areas I believe. Spoke with some realtors and appraisers, my size home is going for really low $300s now.

I tried the short sale route with only one offer. Submitted it to countrywide and after that lengthy process, was denied. So I started the Deed in Lue process back in June. Review process completed, then they have ordered title which I am told takes 30 days, which should be coming in any day now.

I never get calls from them asking for anything, it's always me calling. After yesterdays call to them, I got a call back asking for last year's tax returns and my listing agreement. I sent both over to them (even though I had sent pictures of the sign in my front yard and advertisement a couple other times.

Whenever they asked for a listing agreement in the past I explain to them I am doing it by owner they said that's fine, just send over what I can to show it is for sale.

Thanks

[Cat Damiano]

Good Luck with the DIL.........
With just one lien you are in a much better position for them to accept it......
Please keep us posted on your progress...........

[CWMATT]

Will do. I am thinking I should know something in the next week or so, title will be in soon (which is clean). Only comes down to numbers I guess now.

[CWMATT]

OK, apparently, they do not accept "For Sale By Owner' listings and want the home listed with a realtor, a 90 day listing agreement, and it advertised on the MLS. Even though I asked every person I spoke to over there if the info I sent to them was acceptable said yes, it wasn't until I spoke to my actual case manager that he told me otherwise.

All fixed, met with a realtor buddy of mine yesterday, should have everything I need today.

On a good note, the appraiser came out yesterday from CW, she said the house was in above average shape compared to most she sees for them. She only does CW appraisals. I didn't trash or strip it when I left but nobody has been living in it for 5 months now. I would assume that if CW is spending money on an appraisal that it is looking good that this D.I.L. will actually go thru.

CW actually has a lawn crew going to the house about every 4 or 5 weeks, anybody else experience this?

[Cat Damiano]

Matt,


It sounds good...............

Good Luck with the DIL.......

Keep us posted on your progress..........

[NJPNJP]

CWMATT.
We are considering doing a deed in lieu with Countrywide and wondered how your turned out...did it ever go thru?
Thanks

[CWMATT]

I just spoke with my negotiator today. My second order of title has been completed, they are satisfied with whatever calculations they make, and forwarded my file to upper management for their final decision. I am told I will have an answer in one week.

At this point it looks pretty good. If it wasn't for the 'for sale by owner' issue, I think this whole process could have been done a couple months ago. Who knows, maybe they just want to delay the process for as long as possible. Either way, I really hope to have this issue over and done with by the end of the week.

When a lender does a deed in lue, do they assume the real estate tax liability also? I am current with the exception of this year.

[Cat Damiano]

Once they agree to the DIL they will send you the documents to sign and it should encumber all amounts tied to the property and relieve you of them......just have the docs reviewed by a real estate attorney..........

[Professor Shays]

Their primary concern is liens and encumbrances that are junior to their loan. That is because if they take the deed-in-lieu, they take the property subject to those liens. Real property taxes actually have priority over their loan so they will likely be willing to accept title in that condition.

Good luck and be sure to let us know if you succeed in this process. I concur about getting an attorney to look over the paperwork. What you want is to give them the house and be free of the debt. To insure you desires are met, it is critical that you get an opinion from an attorney skilled in real estate law and debt collection practices.

Take care,

Daniel

[CWMATT]

So far so good. Called again this afternoon, was routed to a different system than I was dealing with before. Automated message telling me my deed in lue was approved, I should receive a phone call and paperwork to fill out by Nov. 4th. Also said don't bother trying to contact anybody before Nov. 4th that it was in process.

Once I get the package I will swing it by an attorney. Thanks for the advice, if I couldn't complete this with no liabilites then there was really no sense in doing this. I found the name and number of the real estate attorney I used for my first home purchase back in 1998.

I will keep everybody posted, thanks for the well wishes and advice!

[CWMATT]

double post, sorry

[CWMATT]

Ok, I guess good news, not really sure. So I got a call just now from my account rep at CW and he said that upper management has accepted my Deed In Lue as long as I agree to a $10,000 promissary note to be paid back interest free over 3 years. I about dropped the phone. He said that it works out to about 300 a month and asked if I was ok with that. I said I would like to see the paperwork to see what it includes. He pressed for an answer, almost like saying he wasn't going to send it unless I agreed to it over the phone.

He did go on to say that if there was a better amount I could afford that I could counter. I asked about ZERO. He said that the deal would be cancelled due to the fact that my credit report shows I am paying everything else on time. After I got done laughing, I explained to him that when my business started going downhill a year and a half ago I started selling everything to reduce my monthly debt and that there is nothing else on my credit report with the exception of one credit card that I buy gas with. He really didn't seem to know all that much about the process and how they get to that amount of money but my 626 credit score was enough for the higher ups to charge me something.

So I told him that I could do 150 a month for 3 years (it's interest free also).

He was going to take my offer to the higher ups and let me know by tomorrow if that is acceptable.

I put 20% down and I didn't have a neg am loan, my house isn't as upside down as most people. I can't see this not going thru and if it doesn't, I really can't see a scenario that does. I guess I needed totally bad credit and be living under a bridge. Bad enough I am renting a room.

Has anybody else had to pay money to give a house back?