Help. Desperately need advice re. foreclosure

Due to unexpected medical problem, I'm unable to make my mortgage payment, and have already extended the time. I'm afraid to call and ask for a deed-in-lieu-of-foreclosure (dilf). How do I get the lender to agree to the dilf? How does a short sale work? I might be able to find a buyer if I work fast, but my mortgage is due Monday and I can't afford to end up owing a penny. How painful is a dilf? Could I end up owning money on taxes? Would I need a lawyer in the event they agree to a dilf? Would appreciate any advice.

would be to consider what Raven posted in your other thread. If I recall correctly, she was a lawyer. I know she's retired now.
She says you should have a lawyer, she's probably right.

:hug:

A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in a real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.

The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he would in a formal foreclosure. Advantages to a lender include a reduction in the time and cost of a repossession, and additional advantages if the borrower subsequently files for bankruptcy.

In order to be considered a deed in lieu of foreclosure, the indebtedness must be secured by the real estate being transferred. Both sides must enter into the transaction voluntary and in good faith. The settlement agreement must have total consideration that is at least equal to the fair market value of the property being conveyed. Generally, the lender will not proceed with a deed in lieu of foreclosure if the current fair market value of the property exceeds the outstanding indebtedness of the borrower.

Because of the requirement that the instrument be voluntary, lenders will often not act upon a deed in lieu of foreclosure unless they receive a written offer of such a conveyance from the borrower that specifically states that the offer to enter into negotiations is being made voluntarily. This will enact the parol evidence rule and protect the lender from a possible subsequent claim that the lender acted in bad faith or pressured the borrower into the settlement. Both sides may then proceed with settlement negotiations.

Neither the borrower nor the lender is obliged to proceed with the deed in lieu of foreclosure until a final agreement is reached.

I doubt the mortgage company will do this but with so many foreclosures out there, they just might. Are you already into your fourth month? The only other way is a ch. 13 bk repayment plan, it saves your home.

Ask for default resolution. In most cases, lenders will kick a single payment back into the loan agreement, extending the loan an additional month (or two). Also, most lenders don't send a mortgage into default until you've missed 3 months of payments. Since you're short on your mortgage, I'll assume you don't have the money for a lawyer.

With a Deed In Lieu, you still lose your home. A lender loses $40,000 (on average) for every foreclosure they do. However, with a Deed In Lieu, you basically sign a deed and walk away. Taxes, etc would be the lender's problem.

Spent 10 years at a real estate law firm and we did foreclosures like mad. PM me with any specific questions.

it takes several months of missed payments befor the f-word is even considered.

they can defer and WILL WORK WITH YOU if you work with them. NOW. don't wait another MINUTE