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Question: I am being offered a deed in lieu by boa and wells fargo is the investor that is buying it. they have asked?

(Posted by: Debra M on 2010-02-24 15:37:35)

Me to contribute $5K. I asked the person handling the deed in lieu if they will sign a release for a future deficiency judgment and she said no and that it was not negotiable. She didn't think they would proceed with a judgment but would not give me any guarantees. I do not know what to do. I have attempted to short sell it for 1 year, can't due to it being in a new development and the builder is matching the short sell costs. I lost my job 9 mos ago and have pretty much run out of money. If I do not get a deed in lieu they said they would foreclose and would get a judgment. I live in florida. Not sure what to do. I am 140K underwater. Any way I can be sure not to have a deficiency judgment? I really do not have the money to hire an attorney.

Posted by: Ed Atun on 2010-02-24, 21:47:51

You already tried the one approach that would work. You get a letter from the lender guaranteeing that they won't come after you for any deficiency. If you declare bankruptcy, the bank won't take the Deed In Lieu. It would be too dangerous. They would just wait until the bankruptcy was done and then complete the foreclosure.

Posted by: Realtoratheart on 2010-02-24, 15:45:07

You may have to consider bankruptcy. I'd take the deed in lieu of, give them 5k somehow, even if you put it on a credit card. Then file bankruptcy, which will wipe out any future judgment. Timing is key here. So talk with a bankruptcy attorney fast. While I know this is very disheartening, the quicker you do it, the sooner you can begin recovery. I wish I had filed last April instead of hoping the damn real estate business would turn around. Now my mother n law is supporting us and I'm just sick.