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A Sacramento Loan Mod Horror Story with Bank of America

3 Aug

“In the long run it [the loan mod] was garbage…and a complete waste of time….”

-John & Tanesha Chuma

 

Listen to some of my clients candidly discuss their experience trying to get their loan modified by Bank of America.

What is a Deed In Lieu of Foreclosure?

29 Mar

What is a Deed in Lieu of Foreclosure –

A “Deed in Lieu of Foreclosure” is just another foreclosure alternative.  It is when a borrower is in foreclosure and

Bankers always win

Bankers always win...

decides to sign over the grant deed to the lender in exchange for cancelling the loan and halting foreclosure proceedings if they have been initiated.  While a Deed in Lieu of Foreclosure will generally look better on a credit report there are a few issues with them:

Issues with a Deed in Lieu of Foreclosure –

Lenders will not always agree to Deed in Lieu of Foreclosure, they do not want to own real estate, they want cash.  Another issue can be if there are any other liens on the property;  If a lender agrees to a Deed in Lieu of Foreclosure they will have to take care of any liens before they will be able to resell the property, and since a foreclosure typically wipes out most junior liens this can be an attractive route for them.    So why would a lender agree to Deed in Lieu of Foreclosure?  Foreclosure are expensive and usually the value of a property is substantially less at a foreclosure auction versus a more typical real estate transaction. (more…)