deed in lieu

[Cayuga26]

What is the name of your state (only U.S. law)? Virginia I am behind in my mortgage 2 yrs, mortgage company told me if I move out and leave the home in good condition, that the govt has a program to reimburse me up to $10k for relocation.

The mort co. had my home inspected by appraiser, swept clean, and I moved out, but now the locks have been changed and my mort co has not given me the money they promised, and they will not return my calls? I think they tricked me to move out with false incentive to pay me. They recorded our conversation whenever I called and they did promise to pay me. Do I have any legal recourse? Can I renter my home even though the locks have been changed? I was never told they would change the locks.

 

[quincy]

What is the name of your state (only U.S. law)? Virginia I am behind in my mortgage 2 yrs, mortgage company told me if I move out and leave the home in good condition, that the govt has a program to reimburse me up to $10k for relocation.

The mort co. had my home inspected by appraiser, swept clean, and I moved out, but now the locks have been changed and my mort co has not given me the money they promised, and they will not return my calls? I think they tricked me to move out with false incentive to pay me. They recorded our conversation whenever I called and they did promise to pay me. Do I have any legal recourse? Can I renter my home even though the locks have been changed? I was never told they would change the locks.

You should have a real estate attorney take a look at the papers you signed with your mortgage company. All mortgage companies handle deeds in lieu of foreclosure a little bit differently.

At its most simple, with a deed in lieu of foreclosure, you voluntarily give up all of your rights to the property, the lender becomes the new owner of the property, and you walk away from the house owing nothing. The deed in lieu of foreclosure is offered primarily to homeowners whose house value is shown through an appraisal to be less than what is still owed on the loan. The mortgage company is unlikely to recover in a foreclosure auction the loan balance.

As an incentive to move out by a specific date, some lenders will offer cash to the homeowner. This was apparently offered to you. You should have a written and signed agreement indicating this.

Again, seek out help from a real estate attorney in your area for a personal review. Good luck.

 

[justalayman]

You said the mortgage company told you the GOVERNMENT had a program to help you. Did you seek out whatever program this was and if necessary, apply for it? I have no idea what the program may be as the last I knew, there was never anything close to a $10k benefit.

Can I renter my home even though the locks have been changed?

only if you want to be arrested for trespassing

I was never told they would change the locks.

why would they have to tell you what they did with the home once you relinquished possession?

Ya, I think you might have been tricked but once you delivered a deed, you're done.

 

[quincy]

It is often called a "cash for keys" program and it can be an add-on to a deed in lieu of foreclosure.

I tried to locate a link to Virginia-specific information that was written in easy-to-understand language - and failed. However this Ohio link explains it all nicely and the bulk of the information applies to Virginia:

http://avoidforeclosureohio.org/Home/GivingUpYourHouse.aspx

Again, though, mortgage companies each handle foreclosures a little bit differently and so a real estate attorney in Virginia should be consulted, so that the specifics can be reviewed.

 

[FlyingRon]

Read carefully to make sure that you are not still liable for the (then) unsecured debt after the deed-in-loo.