Is Deed in Lieu of foreclosure an option for me?

[Perceval]

I am at the beginning of the process of trying a short sale. Any comments/suggestions are most welcome.

I found the questions below on a previous post by 'bailey's dad' in this forum. I'll use them as a guide to relate my situation.

1-What state are you located in?
The house is located in Virginia (I've since moved to Washington, DC and the tenants I've had for the past year are moving out Aug. 31, 2009).

2-What are the amounts of the loan(s)?
Two loans, 80/20 fixed-rate, totaling $200k.

3-What is the value of the house?
Our real estate agent estimates $170k.

4-Do you want to stay in the house?
We don't live in the house. We bought in 2006, lived there for two years, moved out last year and rented to avoid a sale below the loan amount.
It's not affordable to continue to rent the house since:
-we moved a year ago for employment -- no longer primary residence
-the rent we got for the past 12 months is $300 below the mortgage
-the house won't rent at the current rate we'd have to go down $200 more because of the rental glut
-the taxes went up $100 / month

5-Was all the money used for purchase purposes or did you take money out for any reason?
All of the loan was used to buy the house.

Other information:
-We're current on payments
-We don't qualify for "Making Home Affordable" govt programs since it's not our primary residence -- so we've been told
-Our lender won't offer lower rate from FHA since not primary residence

Thanks in advance for your advice.

[AZ Meltdown]

Sorry, but basically NO ONE gets a deed in lieu.
Moe posted that he knows of only 5 that have.

You have a better chance of getting a seat on the next space shuttle launch.

[adnorris123]

If you hire a lawyer you will have a better chance. I know of a lot of people who have done this on a Primary loan, I am not sure about the Second home. I am in the same boat and am investigating.

[AZ Meltdown]

Originally Posted by adnorris123

If you hire a lawyer you will have a better chance. I know of a lot of people who have done this on a Primary loan, I am not sure about the Second home. I am in the same boat and am investigating.

Hmmmm.... Moe, who runs this site knows of only 5 cases, all with attorneys who have received a Deed in Lieu and you know "a lot of people" who have received a Deed in Lieu???

Well fill us in with the facts, cuz that doesn't seem plausible.

[adnorris123]

Originally Posted by AZ Meltdown

Hmmmm.... Moe, who runs this site knows of only 5 cases, all with attorneys who have received a Deed in Lieu and you know "a lot of people" who have received a Deed in Lieu???

Well fill us in with the facts, cuz that doesn't seem plausible.

Well, maybe the people are fudging the facts , out of 10 I know at least 2 aren't. They were all mostly with Wells Fargo in Florida, which could be the reason. They act like it was no big deal at all.
1. Stopped paying to get someone to talk about a loan mod
2. Were not approved for a loan mod
3. Hired a lawyer
4. Lawyer got Deed in Lieu
5. The people get the bad credit but no tax implications that they have mentioned.

However these have all been all primary loans, not 2nd homes or Investment properties. Also, these people had lost their jobs, there was no way they could pay regardless.

[AZ Meltdown]

Originally Posted by adnorris123

Well, maybe the people are fudging the facts , out of 10 I know at least 2 aren't. They were all mostly with Wells Fargo in Florida, which could be the reason. They act like it was no big deal at all.
1. Stopped paying to get someone to talk about a loan mod
2. Were not approved for a loan mod
3. Hired a lawyer
4. Lawyer got Deed in Lieu
5. The people get the bad credit but no tax implications that they have mentioned.

However these have all been all primary loans, not 2nd homes or Investment properties. Also, these people had lost their jobs, there was no way they could pay regardless.

Very strange.
I posted a "Who has got a Deed in Lieu" thread starter here about 2 months ago and not a single member said yes or even that they knew someone who did.

I personally know of dozens that tried, including one who had family connections with someone very high up in the lenders corporation.
Still no dice.

[adnorris123]

AZ Meltdown, maybe it is the state of FL, they are like 3rd in the country in foreclosures right now. I talked again with a close friend who had a house in Ft. Meyers. She said she had never heard of a Deed in Lieu until her lawyer brought it up to her, he handled everything. If Wells Fargo did not accept it would have been a basic foreclosure.

I have heard it is a pain in the butt for lawyers to do, so depending on the lawyer they go for it or don't? Maybe some think the work isn't worht the money? I don't know. Either way I am screwed as I live in NC and can't find a lawyer who will even discuss with me until we are 3 months late and pay $400 for a consultation. I am still trying to figure out what the deal is with a 2nd Home.

[Perceval]

Thanks to everyone for their comments.

We're now nearly two weeks delinquent and going forward with short sale proceedings. I've emailed our lawyer -- pre-retainer -- to see if DIL is an option but he has yet to reply.

I'll be posting over at this thread: Bank of America - Short sale with collectible Debt