DON'T Listen to your BANK.....a Foreclosure vs. DEED in Lieu... is NOT a GOOD THING!!!!?!?!?

By
Real Estate Agent with Keller Williams Jacksonville Realty

WOW, I just helped some homeowners from making a HUGE Mistake. They are soon to be starting to miss their payments because of a financial hardship...so they called their bank. The BANK Told them it would be very simple to do a Deed in Lieu of foreclosure, and that a Short sale might take too long. (Heck, they aren't even behind on their mortgage yet?!).

They didn't understand that a FORECLOSURE and a DEED-in-Lieu are practically the same thing! (Deed-in-Lieu is the 2nd worst thing). For the next 7 years, when they fill out applications, it always asks..."Have you ever had a Foreclosure or given a Deed back in lieu of foreclosure"...and you will HAVE TO SAY "YES".

It never asks, "have you done a short sale?" So, if you are current on your payments, and do a Successful Short Sale, it will not be reported on your credit as any missed mortgage payments....and you are SO much better off!!

Doing a Short sale is DEFINITELY the best way to go!!!

My clients were so excited that we were put in each others way. Isn't that great...that everything happens for a reason!!!

They actually called me about a rental I had listed, and I asked a few questions, about when they needed it, and where they were living now. They told me their situation and I went right over to talk to them, to explain the difference of a Deed-in-lieu and a short sale.

I LOVE HELPING PEOPLE....especially when MANY people don't know who to ask....I just wish we could share our Real Estate Wisdome with more people.  It's such a shame when they call the bank, expecting to get a professional opinion...and then they get the worst suggestion ever!?

Jeannette Kohlhaas

Keller Williams Realty Jacksonville

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"A Straight Shot to a Successful Closing!"

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Comments (4)

Melba Baquero
Melba Baquero, Ascent Home Loans - Temecula, CA

It's unbelievable that banks can get away with doing stuff like that and not suffer any consequences...where's the justice?  Great post and an eye-opener for people that still haven't made the connection that some of these banks are in it for themselves..

May 31, 2011 03:59 AM
Goran Utvic
606 Homes LLC | Chicagoland Brokers Inc, Chicago IL 60656 - Chicago, IL
We Buy & Sell Chicago Houses Fast

Jeannette - I tell people all the time work with your bank first...try modification...then short sale it if that doesn't work out....deed-in-lieu and foreclosure should not even be a consideration.

 

May 31, 2011 04:57 AM
Jeannette Kohlhaas
Keller Williams Jacksonville Realty - Jacksonville, FL
www.MoveFREEwithMe.com

Goran, Yes, I do too....ALWAYS try a Loan Mod first. and the funny thing is....these clients already tried and were denied 2 times....so they will qualify for the HAFA program and get money at closing to help with their move!

 

Jun 01, 2011 12:13 AM
Kristin Hamilton CA Realtor
Sun Lakes Realty - Banning, CA
(909) 557-6966- Specialize 55+ Communties Banning

When clients first contact me and we discuss the Short Sale process, I discuss talking to their bank since HAFA has specific rules the home owner has do as the first step. I warn them "The bank is not your friend." Typically they listen but once in a while, they move on with the bank's advice and later call me to ask for my advice. "The bank lied to me." Usually we can proceed regardless of the lost time.

Jun 01, 2011 08:53 AM