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Deed in lieu Q's plus some

New Member

Deed in lieu Q's plus some

I have a hairy situation i wish was more rare than it probably is. Here's the pertinent info:

All this is in Virginia

03/17/09 I buy my house on a lake. . happy days (VA Loan)

11/08/09 BoA lays off my department. . begin sad days

04/13/10 foreclosure process began

06/01/10 is the sale date set by BoA

05/26/10 I declare bankruptcy chapt 7 (home IS include in the BK, this pushes the sale date back 3months)

07/01/10 I move out of my home and into a rental

Throughout the above process i am in constant and frustrating communication with BoA, to include being told i was approve for a "making home affordable" modification and later being told as i had a VA loan i was never eligible for a loan mod and much much more.


As of 01/11/13 there have been more than 7 sale dates for my home and each time the sale is cancelled at the last minute. Turns out i still "own" the home i haven't lived in or paid on or cared about in more than 2.5 years.  It shows on my credit report as discharged under BK, but not forclosed so collections activity is proceeding. Fortunately my last two year have been better and i am ready to buy again and put down a large sum but my old home STILL appears as an active, open, unpaid loan in foreclosure process. Obviously this dampens my plans. I contact BoA and all of this is confirmed and now for the very first time they offer me Deed in lieu. Which if they had done at the beginning of this process i owuld have snapped it up. Clear enough to me they have paperwork issues with my home, but they seem content to wait me out. Home is now in utter disrepair.  I have read deed in lieu will start a 2 year no go clock on a new loan. ok so now my questiions

Can a deed in lieu be backdated?

Can i make them report the deed in lieu as paid as agreed, and would that even matter because of the BK?

Is there a way to force the issue of making them prove they CAN foreclose on the home and get a resolution?

Do you have ANY other advice or info i could use cuz i am swimming  in internet info and not at all sure how much applies to me?


Thank you for anyhting you can offer.

Message 1 of 14
New Member

Re: Deed in lieu Q's plus some

bump for one more try to get some help, thanks.

Message 2 of 14
Established Contributor

Re: Deed in lieu Q's plus some

This should probably get moved to the Mortgage board.

Message 3 of 14
Valued Contributor

Re: Deed in lieu Q's plus some

Do you want the house if you can negotiate a reasonable deal on it?

Message 4 of 14
Valued Member

Re: Deed in lieu Q's plus some

I agree that this should probably be in the Mortgage section however....

There are a couple of things you should consider.

I do believe (speculation based on what you stated) that BoA does have paperwork issues with the said property and most likely can not provide the documentation they need to in order to foreclose on the property. If they did have the necessary paperwork, chances are they would have completed the process. 

Second, from what I know, a deed in lieu can be backdated, however, this would leave you open to serious ramifications including restarting the loan as "active" and approximately 2.5 years of lates, fees and other baddies. By the way, you stated that they told you that you were approved for the "Making Home Affordable" modification, did you sign any papers or applications for this? If you did, this would essentially "renew" your loan terms and amounts. 


Lastly, I would seriously consult a bankrupcy lawyer as I am not a lawyer.


All in all, the bank is most likely waiting the sale of the property until they can recoup some money on the sale. Depending on the amount of your homestead exemption (not sure if you included this).

Chase Freedom ($700), PFCU ($4k), Capital One ($750), Sears/CapitalOneJr. ($420)

Gardening until scores hit 700.
Message 5 of 14
Super Contributor

Re: Deed in lieu Q's plus some


Moving to Mortgage Loans...

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 14

Re: Deed in lieu Q's plus some

No a Deed in Lieu can't be backdated.

There are a couple of issues one BOA has to accept the DIL, which thankfully they will do now. Two, the DIL has to be recorded in the public records. The effective date is the recorded date. If the DIL is not recorded there is no transfer. Naturally you will want to speak to a real estate attorney to help with this DIL process.


By the way, BOA is offering substantial incentives now beginning yesterday. Have you considered a short sale (even after your BK)? The incentives range up to $45,000

Contact a CDPE in your area (thats a Realtor that specializes in short sale offerings) to get details.


One more thing, you shouldn't be subject to any collection activity at all. If your BK was successfully discharged, they can't come after you for the deficiency. That is another avenue for you to check out with your BK attorney.

Message 7 of 14

Re: Deed in lieu Q's plus some

Let me clarify the above post^^^, the BOA incentives are for the seller and are based upon the specific investor that owns the loan. This new incentive program just started yesterday Jan 16 2013.

Message 8 of 14
New Member

Re: Deed in lieu Q's plus some


   I finaly got in touch with my specialst. Who first told me i was in fact NOT eligible for the DIL process, then i was transferred to the DIL dept and was told I WILL be eligble for the DIL process in a couple weeks. I am very skeptical of sending them the documentation that want however. My paren'ts both passed last year and i have a pretty substantial amount of money in saving and invested, and i fear if i send them my bank statements and monthly pay stubs they may see this and give me a hard time.  You mentioned incentives is that just for SS or is DIL included? I don't think short sale will work as the home has been unoccpied for years and the ceiling has caved and there is mold etc.  This is also why i certainly don't want it back. 



Message 9 of 14
New Member

Re: Deed in lieu Q's plus some

Also my BK has disharged. . in 2010 so thank you for reafirming they can't come after me for it.

Message 10 of 14