How to Speed Up Deed in Lieu or Foreclosure Process

[shoppychic]

My question involves a mortgage in the state of: Georgia

My husband and I purchased a home in GA and then were relocated across the country. We rented the home out for several years to try to keep it but it was draining us financially (couldn't charge rent for what mortgage was owed). The property is worth significantly less than what we purchased it for. We tried to do a loan mod on the house and was turned down.

We have not made payments for 11 months with the hopes that the bank would accept a deed in lieau or foreclose on us. We are wanting to get this whole nightmare over so we can rebuild our credit. We have constant contact with the bank (Wells Fargo) and constantly get 4000 different stories none of which are the same. We are wondering if there is anything to do to speed up the process to get a deed in lieau/foreclosure. The bank knows that our intent is not to keep the home, yet there is nothing they are doing to foreclose on it.

Is it possible to take litigious action against the banks for them not foreclosing in a timely manner and thus not allowing us the opportunity to rebuild our credit and move on with our lives?

Any advice would be appreciated as we feel like we are spinning our wheels with the bank and getting nowhere at all.

[jk]

they are not obligated to agree to a deed in lieu of foreclosure nor are they required to initiate a foreclosure until they choose to.

[shane1234]

Hello. I feel for the OP. I’m in the EXACT same situation with a property in Nevada. I’ve been trying to do a DIL with Midland Mortgage since February.

In April, I got a letter from Midland that read as follows:

Please review and execute the attached agreement regarding the VA Deed-In-Lieu of foreclosure. Be advised that execution of this agreement does not signify the completion or acceptance of a Deed-In-Lieu of foreclosure. By executing this agreement, you acknowledge your understanding for the Deed-In-Lieu process and VA’s requirements of you in order to complete the final transaction.

Upon return of this executed agreement, review and verification of clear Title on the property, and completion of all other requirements set forth, out attorney’s office will provide you with the necessary documentation and final instructions to complete the Deed-In-Lieu process. Always be aware that the failure to comply with the requirements of the program may result in immediate termination of the Deed-In-Lieu consideration.

A representative of Midland Mortgage will be in contact with you upon receipt of this agreement. Should you have any questions, contact me at 1-800-XXX-XXXX

I signed and returned the letter the next day, but nothing has really progressed. I’ve had to submit updated copies of utility and HOA statements and keep up payments. I call about twice a week but keep getting the same BS stories that everything is fine and in work.

The HUD website does say that a DIL must be completed within 90 days of the agreement:

http://portal.hud.gov/hudportal/HUD?...sfh/nsc/faqdil

I don’t know if this is a legal requirement of just a guideline though. There doesn’t seem to be any concrete info. I’d love nothing more than to be able to take some sort of legal action against Midland- it’s been well over 100 days since I returned the signed letter to them.



http://portal.hud.gov/hudportal/HUD?...sfh/nsc/faqdil