HOMEOWNERS, FRIENDS AND FAMILY MEMBERS FACING FORECLOSURES...LISTEN UP!!!
Property Values Below $375,000; We can try an Irrevocable Trust 1st - DIL 2nd!
WHAT IS A “DIL” Deed In Lieu Of Foreclosure?
A deed in lieu of foreclosure simply put is giving your property to your lender in exchange of cancellation of your mortgage. We can often convince a Lender that they will “do better” if they take a “DIL” now rather than taking the property back by foreclosure and trying to sell it later with extra additional expenses.
HOW LONG WILL IT TAKE?
The “DIL” negotiation process can take a few weeks. It may take a couple of weeks or could take several months to get an approval. Many Lenders have several layers of bureaucracy, insurers, and investors that we will have to maneuver through in order to get an approval. Therefore, it is important to be patient during this process.
BUT MY HOUSE IS GOING TO FORECLOSURE, WILL I HAVE ENOUGH TIME?
Maybe, maybe not. Just starting the negotiations will not automatically stop a foreclosure. However, many times we can convince a Lender to pause the foreclosure to let us attempt a “DIL”. Therefore, while there are no guarantees, it does not hurt to try.
CAN I STAY IN THE HOUSE?
The purpose of a “DIL”is to give the property to the lender in lieu of the foreclosure. Therefore, you will be moving. This is not a program that can stop a foreclosure and allow you to keep the house indefinitely. When we hand over the house to your lender’s representative, the house will need to be vacant, swept clean, all debris removed from inside and outside, and the lawn mowed, so you should make plans to move as soon as possible and complete these requirements.
HOW DO I KNOW THIS WILL WORK?
You don’t. We cannot, have not, and will not make any promises to you that this will work. Once you missed a payment, the Lender is in charge and can proceed to foreclosure if they want to. However, we know they do not want to and we are very good at presenting alternatives to the Lender that they often want to accept rather than foreclose. We are very good at what we do, but NO PROMISES are being made as to whether or not the Lender will accept a “DIL” – they may or may not.
WILL I GET ANY MONEY FROM THE SALE?
NO. In granting a “DIL”, you the borrower will not get any proceeds from the transferring of ownership of the property with a “DIL”. The Lender will more than likely take a loss on your loan.
WHAT HAPPENS IF THIS DOESN’T WORK?
Your house will likely go to foreclosure. A “DIL” is something to try after you have exhausted your other options, for example a Short Sale through a Realtor.
WHAT IS A “RELEASE”?
A Lender may offer to “release” its security interest against the property in exchange for less than the total amount of the note. A release will allow the property to be sold without paying off the obligations of the note. However, the note is not satisfied.
Advantages: This successful “DIL” will allow the property to be transferred to the lender and thus avoid a foreclosure. Disadvantages: The remaining debt on the property (sometimes called a “deficiency”) still exists. You are still liable for the note – in other words – you still owe the money. Reality: It is not likely that the Lender will pursue the deficiency unless you have other significant assets, and if you don’t try a “DIL” and the property goes to foreclosure, you may have a deficiency anyway.
WHAT IS A “SATISFACTION”?
A Lender may agree to accept less than what is owed as complete and total satisfaction of the note when they sell it. Advantages: Your note and obligation to the Lender are satisfied for less than you owe. When the property is sold, the debt is paid off completely. Disadvantages: You may have some tax consequences that you should discuss with your tax advisor because the Lender is making money you owe disappear. Sometimes the negotiations are successful in obtaining a satisfaction. Sometimes all you get is a release.
HOW CAN I HELP?
The Lender will require a review of a financial package that usually includes: two months’ bank statements, two months’ pay stubs, two years’ IRS tax returns and other information. The leading cause of delay and even denial of the offer to the Lender is caused by the Seller failing to deliver these items in a timely manner. To help succeed, please find as much of this information as you can right now and complete the attached “Financial Worksheet” – this will help the process work faster and increase the success.
GET STARTED NOW!! TIME IS NOT ON YOUR SIDE!!!
CALL: 770-702-2707
FAX: 770-702-2706
