Quit Claim Deed Vs Foreclosure

[Lilfighter]

What is the name of your state? Iowa

Hi Everyone...My husband and I had been having trouble making our mortgage payments due to illness and some relatives who freely lived off our meager means. Eventually we surpassed the point of no return and moved out of our home, expecting the bank to foreclose at any time.

Our loan officer called earlier this week and asked us to come down for a visit as he had an offer to make.We did and he presented us with a "Quit Claim Deed" saying it was a much better alternative for both parties than a full on foreclosure.

He said with the Quit Claim deed the financial institution waived their rights to sue us for any amount unclaimed in the sale of our home, and that it would save us thousands of dollars in legal fees and sales transaction expenses.

We did sign it, but have 5 days to recind if we so choose...So I guess my question is did we really take the preferred route??? What benefits does this hold for the bank? For us? What are the pitfalls, if any???

Any insight would be greatly appreciated. Thanks!

[pojo2]

As I recall it is somes called a Deed in Lieu of and if that is what you signed it is a perfectly legal alternative to Foreclosure.

Why did you not try and sell the home instead of this avenue?

[seniorjudge]

Q: What are the pitfalls, if any???

A: You lost the money you could've gotten had you sold it (that is, if you had any equity in the land).

[Lilfighter]

We waited too long to sell. And if we had sold we would have lost money. Those same relatives who put us in this place also broke some walls and the garage door. Since we couldn't even afford to pay the mortgage, there was no way we would have been able to fix the damage they caused.

Funny, there are times I wish I could sue them for all the troubles they've caused.