I have had a few foreclosure attorneys send my customers offers for "cash for a deed in lieu". I questioned the servicer as to why the attorneys were sending investors and second homeowners letters for cash. Bank of America states that this is an option if a short sale does not work out. Why the attorneys are sending out letters for deed in lieu instead of telling homeowners to FIND A REALTOR and list for a short sale is troubling. I have asked Fannie Mae to tell me why as a tax payer we are paying investors money to give back property? Why are foreclosure attorneys being paid a bonus to complete deed in lieu's? Why are Realtors asked to help lenders and servicers but it seems like we are being cut out on our own deals? I have had two deals in for short sales with cash contribution requests from Bank of America. At the same time the borrower is asked for a deed in lieu where the lender will pay them cash? Tell me why the borrower would want a short sale and have to pay money? The deed in lieu program allows foreclosure attorneys to offer cash AND FULL RELEASE of DEFICIENCY. We are sending the wrong message.
ATTN LISTING AGENTS:
IF YOUR SELLER HAS RECEIVED A LETTER FOR A DEED IN LIEU WHILE IN AN ACTIVE SHORT SALE, PLEASE EMAIL ME THE DETAILS. LET ME KNOW IF YOUR FILE WAS FANNIE MAE OR FREDDIE MAC AND IF YOU WERE IN EQUATOR UNDER REVIEW. I AM SENDING A COMPLAINT TO FANNIE MAE ABOUT THIS ISSUE AND HOPE THEY ADDRESS THIS WITH THE FORECLOSURE ATTORNEYS.
LORI YOUNG PA REALTOR
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I am in the same situation. My client is doing a short sale and says that the bank is offering them compensation to complete a deed in lieu. There is truly something wrong with the system if banks are doing this. Just for knowledge sake, how long does the deed in lieu remain on their credit report vs a short sale? My sellers are looking to do the deed in lieu so they can receive money. In that case why don't the banks just pay the sellers for a short sale right out instead of the HAFA program. Which many homeowners don't even qualify.
Thanks,
Gwen Harvey/Realtor
I had several short sale files that the bank (Fannie Mae loans) advised my client to do a DEED IN LIEU. What is the purpose to this? The only thing I could think of is for taxes!!!!
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