Home Loans and Support

Deed-In-Lieu with Wells Fargo

Discussion in 'Wells Fargo Home Mortgage' started by whattodo1, Nov 5, 2010.

  1. whattodo1

    whattodo1 LoanSafe Member

    I am considering trying to get a deed in lieu of foreclosure approved on my house, but of the people I've spoken with at Wells, I seem to get different answers from everyone of them regarding what is required to get a DIL approved. So far it seems like DIL is a better option than short selling because it would get us out of our house possibly a lot sooner than a short-sale with similar credit report effects, but when I asked the rep why more people aren't doing this she said most people don't qualify. Since we are current on our mortgage and only have the one mortgage loan how easily can a DIL be achieved? From what I've gathered, we have to put our house on the market for 90 days, then request a DIL if no short sale has already been approved. then wait 30-60 days for investor approval (Fannie Mae), it seems like the tricky part is having to be at least 30 days delinquent but no more than 60 days delinquent at the time of DIL request. Is it easier to get an approval from Fannie Mae than wells fargo? Also, if I skip 1 payment then continue to make the rest of my payments on time will that keep me in the category of being '30 days deliquent'?
    Thank you!
    p.s. I am $125K underwater but my home expense-to-income ratio is only 28% with a 20% debt-to-income ratio, if that information helps with your response.
  2. jakelabry

    jakelabry LoanSafe Member

    What is your hardship? Almost all lenders will require some sort of hardship before approving short sale or DIL. Being underwater IS NOT considered a hardship and your debt-to-income ratio doesn't even come close to representing a hardship.
  3. DBarr13447

    DBarr13447 LoanSafe Member

    DIL is NEVER faster than SS!!!
  4. laststraw

    laststraw LoanSafe Member

    I think deed in lieu is a myth. Haven't heard of anyone on this board who has gotten one. It took 3 months for Chase to send me DIL paperwork. When they did, they wanted it back in 5 days (of course), they wanted very comprehensive financial info. and I had to sign a statement saying I was responsible for all of the investor's and Chase's "losses and damages" if any of the financial info. was incorrect.

    My opinion? Don't hold your breath. Doesn't sound like you have an overwhelming hardship and they don't give a flip that you're underwater.
  5. whattodo1

    whattodo1 LoanSafe Member

    Thank you for replies. I thought this sounded too good to be true and knew I couldn't ask a realtor nor get an honest answer from the bank. Laststraw- did you end up getting approved for the DIL?
    To respond to the first question, no we don't have an overwhelming hardship and given the fact we are 3% under than the max of 31% for home expense to income I'll take the advice and not hold my breath.

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