PHH Group,

I have an investment property I own in Stateline, NV that is severely underwater (150k).  I am current on it with no liens on the property. Been carrying losses for years that total over 100k now and it makes no sense to keep it (PHH holds the loan of course).  

I wrote a letter to the Short Sale dept asking for Deed in Lieu of Foreclosure (based on advice from an attorney), and if not acceptable, a request to proceed with a Short Sale.  I just listed the property on the mkt this week and its being shown this weekend. Its priced right and we think it won't take too long for some offers to come in. 

I heard back from a Case Manager at the Mortgage Service Center earlier today.  Regarding the two options, they stated the following:

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You can only be reviewed for one workout option at a time.  If you want to be reviewed for a DIL, The Uniform Borrower’s Assistance Form needs to be completed and instead of checking off sell property, you need to check it off, then cross out sell property and handwrite Deed In Lieu next to it.  The investor reviews all your information and will make a decision based on that.  You are not given a decision on whether they will approve you or not until all documents are received. The process takes 30 days after a complete package is received and the foreclosure process does not stop while a decision is pending, unless an extension is granted by the investor to give them enough time to finish the review.  An extension is not guaranteed, nor is an approval.   

Getting all the documentation in to be reviewed is the most important thing at this time.

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Question #1: What is the probability of a DIL being accepted?  Any experience from anyone in this Group on which department is easier to work with?  Obviously, trying to figure out if it make sense to waste 30+ days pursuing a DIL vs. going the short sale route immediately.  

Question #2: PHH confirmed my wife's name is not on the loan, however she is on deed of trust according to the recorder's website.  Right now, I'm filling out all papework in my name which is what we prefer since my wife holds some significant 'paper' assets that may make our packet less likely to be accepted.  However, we file taxes jointly and have some savings a/c's in both our names.  Any advice on how to complete the call for assets in such a situation?  Our hardship is the continued loss on the property, no rental income, depressed mkt.  To be clear, we are able to pay for it, but it makes no business sense to hold on to it at this point.