Deed in Lieu of Foreclosure
OK experts, how do you reply to this question from a person in default? "My attorney has advised me that the bank would look much more favorably on me and my credit record if I gave the house to them rather than going through a lengthy foreclosure process or 'short sale' "
Assume not other liens are on property and the foreclosure is a long(minimum 1 year) judicial process!
Dan in Cleveland
At first blush, I would be inclined to think that the attorney wasn't familar with the short sale process, and how a short sale is a superior alternative and preferable to a lender accepting a DIL.
Fact is, most lenders aren't in a position to accept a DIL unless/until the property has been professionally marketed at it's as-is, FMV with no market activity.
Sounds like the attorney is seeking to promote his service.... bankruptcy. But that's to be expected.
If you walk onto a used car lot, chances are that you'll buy a used car.