Deed in lieu of foreclosure Before being late

[wild_tempest]

What is the name of your state? WI

Our house has been on the market for awhile now and it isnt selling. We have only had one person look at the house. We cant lower the price since we owe almost full price on it. Nothing in this area is selling. The realtors and other folks say this is a bad time for real estate in our area with more and more homes being put up for sale.
We want out! We need out! The mortgage is too high along with gas/electric and taxes.
We arent late with any payments and our credit is very good.
My question is: Can I send a Deed in lieu of foreclosure before actually being late on any payments?
Thanks

[HUD-1]

The progression usually goes something like this: a buyer becomes delinquent, attempts to sell. Proposes a short sale: Owner finds buyer at a price that does not fully pay the mortgage. Lender accepts less than full pay-off and gioves buyer assurance that they will not pursue a deficiency judgment. If short sale does not work, the lender then may accept a DIL.

So to answer your question, yes you will most likely have to be delinquent AND attempt a short sale before the lender will accept a DIL. Also, usually you need to show a hardship, not just a desiore to get out. But don't ask us, ask your lender!

[seniorjudge]

Originally Posted by HUD-1

...But don't ask us, ask your lender!....

That's the best advice anyone can give you.

Point out to the lender that they will not have to spend money on trying to collect from you and/or foreclosing.

But also realize that they do not want to be in the real estate market so you may have to come up with some dough to get the place sold.

[exotiq]

Hi,
I'm experiencing almost the same problem as "wild_tempest". However, in my case, I'm no longer living in the home. I accepted a position with NASA (in another county), which I felt was an opportunity that I couldn't turn down. As I was preparing for the move and transition, I put my home up for sale, initially through BuyOwner.com (I was trying to save a little money). As I was seeking out a new residence in the county that I would be working in, I found a home that I purchased. I'm now living in that home, but now I'm faced with the dilema of trying to sell the old house. I recently decided to list it with a realtor (as of Sept. 2006), in the hopes that this would speed up the process. So far, nothing...and I've just about run out of money. I just borrowed some money from a family member, to help pay last month's mortgage on the house for sale. The next mortgage payment will be due on the 15th of this month (Nov. 2006), and I know that I won't be able to pay it. My cousin has loaned me more money to make repairs/upgrades on the house for sale, in the hopes that someone will be interested. She can't lend me anymore money--which I felt that she did more than anyone could and I'm very grateful & indebted to her eternally! I've tried negotiating with the lender, but they claimed that since the loan is not yet 12 months old (I refinanced in May 2006--prior to finding out about the NASA job), there's nothing they can do for me, especially since I'm no longer living in the home. What on earth am I to do now?! HELP!!!!