I was just told today by my mortgage company that I cannot do a deed in lieu because we have a second mortgage, even though the second mortgage was established at the same time as the first by the same mortgage company to avoid PMI. I think this is crazy and I'm going to apply for DIL anyway and see where I get. But just in case, the only other options I have are to try to short sale, which I'm thinking we won't be able to do because of the market, or the next option would be regular foreclosure. The woman told me that we would not be responsible for the difference if we did a short sale but if we foreclosed and there was a deficit, we would be responsible for that. Does this make since? At any rate, if we ended up having to pay the difference on the sale, we would end up probably having to file BK anyway. Should we just file BK anyway if we see that the house isn't going to sell? Please help. I'm so confused as to what would be the best route to go. By the way, we live in Virginia, if that helps any. Thanks!
