Going to Foreclose but lawyer suggested to write a deed in lieu letter first?

[DaPad]

I have an 80/20, 30 year fixed rate loan with Countrywide that was never refinanced. The property in CA is now about worth $120K less then when I bought it 2.5 years ago. I spoke with a real estate lawyer and have decided to go into foreclosure. Everything seems pretty straight forward but he said the first thing I should do is write CW a letter offering them the deed in lieu first. If I'm going to just foreclose, is there really a reason why I should even bother with the letter? I do not want the house.

One other question is that I bought the house with a friend but I am the only one on the loan with CW. She's only on the deed. If I remove her from the deed, would she at all be affected credit wise as I will be? Thanks

[LeavingAZ]

I'm pretty sure CW won't grant you a dil unless (and that's still a big if) you exhaust your options like a short sale and such. I didn't bother. I sent the keys back and told them I was going to be leaving the house and that's it. They will still try to convince you, but I think your lawyer was telling you this for the sake of your credit score which apparently will still be shot after a ss or dil. As for the other part of your ?, I have no idea if your friend will be affected or not by your decision. I don't think she would since you're the one that got the loan.