How late is "late enough to get their attention"?

[NewDad]

I read different things everywhere...

We want to approach our bank (WAMU, now Chase) about a deed-in-lieu on a house we moved out of last September. It's worth (according to Chase's own calculator) about $15K more than we owe on it.

We've been keeping current and trying to sell it, but no luck. We squeezed into a new mortgage on a new house, and live there now.

At this point we're out of savings, and this month we haven't paid. Obviously it's only the 10th today, so we're not particularly late, or on the bank's radar at all, I expect.

...Do we wait, or call them now to talk about DIL? I know for HAMP you have to be late, but how about DIL discussions?

[Enough Already]

Hi NewDad,
I think you have to be about 90 days late to really get any attention. Actually getting a DIL is a very hard thing to do. Moe, the founder of this site/forum has only seen it done about 5 times so far.

My $.02 cents, if your house it worth $15K more than you owe save yourself the trouble, and mess of all this and sell it.

Good luck to you.

EA

[jakelabry]

Originally Posted by NewDad

I read different things everywhere...

We want to approach our bank (WAMU, now Chase) about a deed-in-lieu on a house we moved out of last September. It's worth (according to Chase's own calculator) about $15K more than we owe on it.

We've been keeping current and trying to sell it, but no luck. We squeezed into a new mortgage on a new house, and live there now.

At this point we're out of savings, and this month we haven't paid. Obviously it's only the 10th today, so we're not particularly late, or on the bank's radar at all, I expect.

...Do we wait, or call them now to talk about DIL? I know for HAMP you have to be late, but how about DIL discussions?

There will be no DIL discussions so don't hold your breath. Either short sell it or walk away and let them foreclose. DIL is an urban myth/legend.

[NewDad]

Originally Posted by Enough Already

My $.02 cents, if your house it worth $15K more than you owe save yourself the trouble, and mess of all this and sell it.

Boy, if only it were that easy!

We've been trying to sell it since March of '07, and it's been listed at "pay the note and the realtor" price all summer, with nary a bite.

I'm in Colorado, which if I understand it is a deficiency state and a non-judicial state, strikes one and two if I'm reading things right.

[Enough Already]

Hi NewDad,
In that case is sounds like you should try for a short sale. If the house isn't moving at the pay the note price you might be able to move it for fair market value. The bank will pay the realtor commision on the short sale, so you don't have to worry about that end of it.

It's important that you find a local realtor who has plenty of experience and success with short sales to handle it for you. If your house is priced right you will get an offer and then your realtor will have to play hard ball with the bank.

The most important thing is that if/when your short sales goes through you make sure the bank doesn't try to hold you to a "soft note". Be sure they are fully releasing you from all liability for the debt and the under lying note. I would advise you to hire a real estate attorney to look over the sales paperwork prior to signing it.

Good luck to you!

EA

[AZ Meltdown]

Originally Posted by Enough Already

The most important thing is that if/when your short sales goes through you make sure the bank doesn't try to hold you to a "soft note". Be sure they are fully releasing you from all liability for the debt and the under lying note. I would advise you to hire a real estate attorney to look over the sales paperwork prior to signing it.

Sound advise!!!!!!!!!!!!!!

Typically Short Sale Documents include this provision and must be deleted.