Please take a look at my letter...I need help with a DIL

[dontwantthehouse]

I got a call from my negotiator, Khadi, today and my DIL has been approved. I counter-offered $1500 lump sum to their $3k offer. They accepted and the official docs will be fed-exed over to me.

I confirmed with her that the DIL is approved for both my 1st mortgage and HELOC.

She instructed me to take the house off the market immediately--why is that, don't they want to sell it? Oh well, we are almost finished!

I get 10 days to review everything and then I have to send a certified check and signed paperwork.

Are there other questions I should ask before the paper work is sent out like making sure that my credit report states that the settlement is paid as agreed, no 1099 on tax deficiency, and etc. I forgot to ask those questions because I was of course caught up in the moment of relief.

This truly will be a Thanksgiving celebration for us!!

Thanks Cat and Loansafe.

Current Workout Status Deed in Lieu View the Details Hide the Details Workout Status Details: Your Deed in Lieu has been approved, and all collections activities have been suspended as a result of this approval. Next steps will include a call from a workout negotiator who will explain the terms and options of your approved workout including all conditions required for the final completion of the workout, such as upfront funds. You will also receive a package of documents in the mail. These documents are time sensitive and must be signed, notarized and returned to us in 10 days, including any required upfront funds. If you have not received your workout package and/or a phone call from your negotiator by 12/26/2008, please contact us. Please do not call back before 12/26/2008 as that may delay the process. Please respond promptly to any calls or requests that you may receive from us during this time period. Lack of response will cause your workout to be delayed or cancelled. Thank you. Information as of: 11/21/2008 Workout Stage: Approved

[Cat Damiano]

That is such great news!
I am so happy that they worked with you on the settlement amount!
Congratulations!

Everything should be spelled out in the documents...........once you receive them you should have them reviewed by a real estate attorney.

[dontwantthehouse]

Okay, I got the first letter of instructions to finalize my DIL. The first letter sent to me was just one page telling me to send my $1500 and that the DIL contract will be sent from CW's lawyer by a week's time.

Well, I looked over this letter and it only had my first mortgage account on it and not my HELOC. So I called my negotiator and she said that my HELOC will never be listed on the paperwork but it is already understood by CW and the investor (Bank of NY) that the HELOC will be settled / charged off by the $1500 lump sum that I am contributing. Otherwise, the DIL would not have been approved.

Then on Saturday I received the DIL docs from the lawyer and again nothing about my HELOC. I had my real estate attorney review the information and she said to go ahead and sign the paperwork and send it back and keep notes about what CW said to me about the HELOC and because the bottom line is that they are setting up an exchange for the deed to the property for the release of the first only.
She suggested that in a cover letter with the signed docs, point out that the re-finance was done by a first and second and that I would expect that the deed in lieu contract would include both notes and mortgages. If necessary, I may also want a separate “transaction” releasing the second. She explained that they are asking me to acknowledge that there are no other liens – and that I can’t do that knowing of the second.


Furthermore, I requested my negotiator to update my debts with them as "debt settled" or something to that effect on my credit report once this is all done and she said that CW has no control on how the credit bureaus list such information. So who do I contact about this?

Cat, I would appreciate your second opinion and anyone else who has gone through a DIL.

[dontwantthehouse]

Okay, we are waiting now on a revised dil contract that includes our heloc but i just got a call from my realtor that we may possibly have an offer but it would be contingent on the buyer's successful closing of their existing home.

My realtor asked if i want to go ahead with the dil or consider the offer since the buyer's house is sold and just needs to go through closing.

I guess I can still decide since I haven't signed the DIL docs yet.

Which is a better route to go: DIL or Short Sale?

I am now 120 days late not including December yet so my credit is already shot but i heard a short sale would still be better than a DIL but I want to go with what makes more sense for us.

For instance, if I did the short sale would I still be responsible for my property tax bill coming in January for the first half of 2008? If I did the DIL, CW would take care of that I was told. Furthermore, if the short sale is a better choice, would I still have to contribute the $1500?

Just when everything was almost finished.

[dontwantthehouse]

Our DIL has been approved and completed. We sent our check and DIL docs back to their lawyers. We got back copies of the releases for both 1st mtg and HELOC signed by their VP and their lawyer told us the county should have recorded under CW's name by the end of the week!!!!

Checked the account online, 1st mtg not there--taken off. Heloc is there but its closed out as a short sale probably due to the $1500 I had to contribute to get out of it.

Thanks again Loansafe.

Short Sale	View the Details	Hide the Details

Workout Status Details:	Your Short Sale has been completed. If you have any other concerns, please speak to a customer service representative. Thank you.
Information as of:	12/12/2008
Workout Stage:	Closed

fyi, the potential offer we had well obviously we didn't go with it because their buyers bailed on them and they were set to close! GL everyone.

[schwefls]

dontwantthehouse:

So happy this all worked out for you

[dontwantthehouse]

thanks lynn!

[Cat Damiano]

Congratulations!!!
That is great news!