Aurora loan called and considered a Deed in Lieu. Want us out first

[filo74]

So after nearly one year of my wife' decision to stop paying the mortgage due to circumstances beyond her control, Aurora loans loss dept gave her a call yesterday and told her that they will be reviewing her financial affidavit form and hardship letter and will consider the deed in lieu of foreclosure. They said she will hear from them in 1 month. They also said in the meantime to vacate the premises in 30-45 days, otherwise they cannot do a deed in lieu. What's funny though is she got served her lis pendes 2 months ago and we hired an attorney to draft a letter to respond to the lis pendes against the allegations. So what does this mean ? It means the courts need to set up a hearing date for her.....but we have heard ONE THING from the courts about any hearing dates that she has to attend. So my guess is that Aurora is having a tough time in finding the documents they need to back up their allegations since the burden of proof is now on them since she responded to the lis pendes with the attorney's help.

She asked Aurora on the phone yesterday during this conversation if they would pursue a deficiency judgement against her and they told her they cannot guarantee anything. I always heard that there needs to be language in the deed in lieu letter they send (if they decide to do it) that states we are no longer obligated to the loan and there will be NO deficency judgement against her. Is this correct ? How do I go about in getting Aurora to agree to our terms if they want to do the deed in lieu ? Help is greatly appreciated.

Thanks

[The Professor]

To safeguard your wife's interests I suggest contacting the attorney she hired to represent her and let them know of the call. The bottom line is I'm sure the attorney will look out for her best interests if there is a willingness to accept the deed in lieu, that the transaction be structured in a manner that has the lender releasing her from any and all claims associated with the loan and provides evidence of full satisfaction of the indebtedness.

Take care,

Daniel