QUESTION
How long does the deed-in-lieu process take after chapter 7 bankruptcy?
Asked on Jul 15th, 2017 on Bankruptcy - Ohio
More details to this question:
We filed chapter 7 bankruptcy four years ago and our mortgage loan was discharged. We are behind on a few payments but, most of all, the home has fallen into disrepair and we can no longer afford to maintain it. I have accepted a job out of state and we will be vacating the property in one month. I have gotten into contact with my mortgage lender and they offered deed-in-lieu as an option. I have told multiple telephone agents that we would like to go that route. However, I have not heard anything from them since then. It has been a week and a half and no one from the mortgage company has tried to contact me or my husband. I have sent multiple emails asking what the next step is, but they just say to call our "dedicated loan specialist" who then tells us that she cannot help us with the deed-in-lieu but that someone would get ahold of us in the next few days. We would like to sign the deed back over to the bank ASAP and just move on.
3 ANSWERS
Real Estate Attorney serving Florence, KY
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Linda S. Novakov & Associates, PLLC
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Ask the Lender for the Loss Mitigation Department. Calling customer service will not get you anywhere. Once the process begins, you should be assigned a service representative to work with. There will be some paperwork required, but if you follow their direction, you should be able to receive an approval and complete the paperwork to transfer title to the lender within 4-6 weeks.
Answered on Oct 01st, 2017 at 12:46 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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It is sometimes very hard to get a mortgage lender to move with any reasonable speed. In any case, waiting a week-and-a-half for a response does not strike me as very long. You can-if necessary-secure the house and notify the lender that you are leaving, that the utilities will be shut off, and that they had better send in a crew to change the locks and by the way, we are ready to sign a deed-in-lieu under which we turn over the real estate to you, the lender, so long as you do not seek any deficiency judgment. It would not hurt to consult a lawyer in your locality who does a lot of real estate work.
Answered on Sep 30th, 2017 at 5:28 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You need to wait on the bank. Just keep your homeowner's insurance until you transfer title to the bank.
Answered on Sep 29th, 2017 at 10:41 AM