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Deed in Lieu of Foreclosure - Bank of America...any experience?

Discussion in 'Bank of America Mortgage Help' started by lvlocal, Jun 26, 2010.

  1. lvlocal

    lvlocal LoanSafe Member

    Hi Everybody:
    I'm now here and just submitted my deed-in-lieu papers to Bank of America. I have 2 mortgages 80/20.

    Does anybody have experience with their DIL program? whether you've completed it or in the process. Any information on how your experience went, timeline and result would be greatly appreciated.

    Thank you.

    LVLocal
  2. crisw

    crisw LoanSafe Member

    Is this deed in lieu under HAFA?
  3. lvlocal

    lvlocal LoanSafe Member

    Hi Crisw,

    I did not apply for HAMP since the investor of my loan is Fannie Mae. I just got a letter from BofA offering me the Deed-In-Lieu and Deed and Lease program.

    LVLocal
  4. jakelabry

    jakelabry LoanSafe Member

    Read about this - it's still really new so I don't that anybody has had any experience with. Just read the article a couple of days ago that BoA was sending out letters offering this to certain borrowers. If you don't want/ can't afford the house, I would jump on this so quick their heads would be spinning.
  5. davephx

    davephx LoanSafe Member

    If lv in lvlocal measn las vegas which means NV ... but also applies in other States :

    The key issue in a deed in lieu of foreclosure is whether the lender is willing to forgive the deficiency balance. Read the contract carefully to see how the deficiency balance issue is handled
  6. lvlocal

    lvlocal LoanSafe Member

    jakelabry - Yes, I did jump on it, if they do what they say in the invitation letter...That they will release deficiency, I will take it. They also said, they do pay some money on the 2nd just like a short sale. I'm just hoping that the 2nd will release deficiency as well. It's a better deal than doing a short sale with BofA since they don't usually release liability.

    davephx - I am really looking forward to the DIL approval and will share updates here as well.
  7. tinkerella

    tinkerella LoanSafe Member

    I'm waiting to get a financial statement from BOA for a deed in lieu of foreclosure. From what I'm told by a rep, the bank is willing to forgive my mortgage and a lien. In addition, they're willing to pay me up to like $3,000 to move out. The funny thing is I don't live in my property, it was always used as an investment property. It sounds too good to be true. I've gone through the deed in lieu process with them last year and was rejected. Is there some sort of a catch here that I'm not getting? I'm really weary about this deal.
  8. d.ray

    d.ray LoanSafe Member

    It does not seem to be as easy as it sounds. I need to move do to relocation. The alternative is severance. My wife has “encouraged†to quit her job when her employer found out through small town gossip, that I may be relocating. It does not seem that I am getting anywhere. I am getting the same runaround that I got from Countrywide before the loan was acquired by BofA (Another tale of fraud, lies and deception involving the fairytale of 2step 203k and Ameridream to originate an upside-down loan). My plan is to stop making payments, shut of the utilities, and move. Any advice, feedback, or encouraging stories of successful transactions would be greatly appreciated.

    I have contacted BofA five times beginning 6/28/2010, to enquire about forbearance, DIL, or short sale do to hardship. The first three calls (1-800-669-6607, Tasha, Nick, Benjamin), I was told that I did not qualify for modification or short sale until I was at least 90 days late on payments.

    (7/6/10) A HUD councilor (800-569-0102) was able to give me direct numbers for BofA DIL (800-689-0102) and short sale (866-880-1232) departments. I was told that I would not qualify for DIL until the house was listed for 90 days, then transferred to the short sale dept. After again explaining that I would be relocating in six weeks and would not be making any further payments, Loretta advised me that if the previous agents had bothered to update my account, they would have seen that there are programs to assist me. She stated that I would receive a packet regarding forbearance and short sale and that an appraiser would contact me within five business days. I was told to receive better service in the future, do not enter a loan number when prompted. Listed property for sale at amount due.

    (7/12/10) Called to check status of forbearance.
    Agent (Carlos with an Indian accent): The account is ineligible for forbearance do the short sale status. Would you like to make a payment today?
    Me: “It is my understanding that if I pay, I will not be approved for short sale.â€
    Agent: “Have you …(incoherent)â€.
    Me: “Sorry, could you repeat that?â€
    Agent: “Have you …(incoherent)†(difficult to hear do to background conversation about “D*** suck lipsâ€).
    Me: “I’m not sure what that is.†“Is there any way that I can minimize the damage to my credit though a payment arrangement while the home is listed?â€
    Agent: “Most people just stop payingâ€
    Me: “I will not be making any more payments until a mod/short/DIL plan is arranged.â€
    Agent: “I see.†Followed by a long period of typing.

    Transferred to short sale department to inquire about documents and appraisal.
    Me: “I am calling to inquire about the short sale status of my home. I have not received any documents or been contacted by an appraiser.â€
    Agent (Carlos with a Hispanic accent): “Have you returned the required documents?â€
    Me: “How can I do that if I have not received the documents?â€
    Agent: “You will need to fax back the documents.â€
    Me: “What documents? Is that something my realtor handles? It was my understanding that I would be given a number that the bank would deem acceptable to list the house at, we will not get an offer at the current price.â€
    Aget: “Just go with the number that the realtor recommends.â€
  9. crisw

    crisw LoanSafe Member

    My understanding is that they will only give you the amount they will accept if it's a HAFA short sale- and frankly. I doubt you can get qualified that quickly (but you sure can try!)

    The documents that they want (at least for HAFA) are:
    An RMA form (download here- http://www.loanresolution.com/rma )
    2009 tax return, signed and dated, with all attachments
    2 most recent pay stubs
    Any recent utility bill

    Fax them to 805-520-5019 and call 800-801-4860 to check on the status (if they won't let you through on that number, try 866-677-2516.)

    You might also call Moss Codilis at 866-984-3677. They handle BOA HAFA short sales without offers, and they are VERY helpful. They may be able to get you into the system.

    Good luck!
  10. lvlocal

    lvlocal LoanSafe Member

    Hello Everyone,

    I just got the approval on my deed-in-lieu with BofA.
    It states that they will release deficiency since it is primary residence if all terms and conditions are met (no liens, broom sweep condition when you move out, maintain yard, and maintenance). I really don't know how they will verify it being primary residence since they did not view the house before approving the DIL.

    They will also give me $4K for relocation, any repairs on the house that I didnt do will be deducted from the relocation assistance. They will send title transfer documents as well.

    They do state that if the loan has a mortgage insurance, that the mortgage insurance reserve may reserve the right to collect remaining due. So check if your loan has one.

    They did not mention anything about the 2nd mortgage which I will inquire about in the next couple days.

    d.ray : I called bofa and told them my house will be put on the market as short sale but it never really happened although they updated their system. I also got a notice of default earlier this year. I was offered deed-in-lieu 2 months ago and I ignored it, they sent the letter again last month then I decided to take it since it appears to be a better protection than a short sale. So yes, they may not entertain you until you are behind on your payments for several months. I highly recommend making sure that all conversations with a customer svc rep is marked in the system before you hang up.

    As for me, I'm meeting with an attorney to review the documents before I sign off and find out if this loan has mortgage insurance.

    Thanks

    Hope it helps.
  11. tinkerella

    tinkerella LoanSafe Member

    I just faxed over my financial statement that the BOA had asked to fill in along with 2 recent pay stubs. The thing is this house is not used for my primary residence therefore not sure if they'll approve the deed in lieu. I've tried the short sale with them but due to the length of the approval process I lost all three buyers. I have applied for the DIL option a year ago but was rejected because my house was vandalized and stupid me I told them about it. However, the reason for vandalization is because BOA told me not to have any occupants in the house. Oh well. I'll keep you posted if BOA accepts DIL on an investment property.
  12. tinkerella

    tinkerella LoanSafe Member

    LVLOCAL - congrats on getting approved. Did BOA ask you for tax returns and bank statements? Thx
  13. d.ray

    d.ray LoanSafe Member

    Thanks for the info.

    I was hoping there was some way to go directly to a deed in lieu, or at least continue to make payments, since it is the missed payments that do the most credit damage. I quess I should have listed the house months ago, but I thought that I should finish the renovations first. Seems that I've been killing myself for nothing trying to get things in order because it all works out the same. The house was uninhabitable when I bought it two years ago. Now it looks great and a new buyer should have no problems with FHA approval.

    Now the problem is that I will be leasing in Michigan, so it will be impossible to maintain the home in California. Will it still be considered my primary residence if it is the only home that I own, but it is unoccupied? My realtor has told me that they will handle all interaction with BofA, is this too good to be true?
  14. tinkerella

    tinkerella LoanSafe Member

    LVLOCAL - one more question, how long did it take for the bank to approve from the time you faxed your paperwork? Thx
  15. lvlocal

    lvlocal LoanSafe Member

    tinkerella:

    It only took 2 weeks to get an approval after I faxed everything. Yes, they asked for W-2 (if employed)/tax returns (self-employed) and bank statement. They did not request for a hardship letter but I sent a handwritten one and it worked.

    d.ray:
    I think the way they determine if it is primary or not is where your mailing address is since they did not check me at the house.
  16. hydee

    hydee LoanSafe Member

    from my understanding, this BofA letter is a scam to get you to send in your financial information so they have more information to come after you for a deficiency later in time.

    I also understand that you cannot be approved for a Deed-in-Lieu if you have a 1st and 2nd mortgage... at least this is what my attorney told me when I got this "letter" in the mail (twice) from BofA.

    My letter also stated that upon signing the letter, that they reserve the right to come after you for a deficiency.

    any comments?
  17. lvlocal

    lvlocal LoanSafe Member

    The letter I received from them stated that they will release deficiency if the property is primary residence. They will pay off the 2nd mortgage about 8% of balance owed but I have to coordinate it with the 2nd. They also offer cash for keys. You may have not seen that since you didn't sign the initial letter.
    I did sign the
    I am meeting with my attorney before I send it in.
    I'll update everybody here
  18. lvlocal

    lvlocal LoanSafe Member

    Also, my property's investor is Fannie Mae. They may be the only one doing it for BofA Loans right now.
  19. hydee

    hydee LoanSafe Member

    my investor is Fannie as well.... which is why I assume that I got the letter. I don't know how they could offer a DIL when I have an 80/20 loan however.

    I was concerned in signing the initial DIL paperwork from BofA when it clearly stated that they reserve the right to sue me for the deficiency.

    As of right now, my case has been dismissed due to BofA not being able to produce papers. just awaiting a 2nd suit for now.....
  20. lvlocal

    lvlocal LoanSafe Member

    What suit are you in with them?

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