Negotiating Deed in lieu

[strunch]

What is the name of your state?

Wisconsin

I should first preface my question by stating that I am not concerned with my credit score, my ability to own a home in the future or the possibility of becoming homeless. I haven't made any mortgage payments for about 10 months now. I was hoping I would be foreclosed upon by now but the loan servicer is dragging their feet. I refused to make any effort attempting to sell my house because I have better things to do with my time. I have kept in contact with my loan servicer and have good communication with them. This has had the effect of taking lawyers out of the loop. It seems like they will accept a deed in lieu. The date of the foreclosure is February 14. I have two questions before proceeding with negotiations.

1. I have read in many forums that banks would rather not foreclose on properties due to the costs involved. What exactly are these costs?

2. I have also read that often the loan servicer will provide moving expenses for the owner as part of the deed in lieu agreement. Is this true?

[ForeclosureHelp]

Hi Strunch,

To answer your questions:

1. The costs vary from state to state and will also be determined by what each lender needs to do to complete the foreclosure and sale of the property. But one thing for sure is a deficiency balance. In other words, if they sell if for less than what you owe, you are responsible.

2. Short answer..depends. You will have to see what your lender will provide, if anything.