Deed-in-Lieu of Foreclosure
Question Details: In May 2009 Obama relaxed the regulations with Short Sales and Deed-in-Lieu of Foreclosure. We financed 100% in 2006 to purchase, we owe 225,000, value ranges from $200,000 to $220,00 as our neighborhood has been hit REALLY hard by foreclosures. There are over 15 foreclosures in the neighborhood, 6 are on my block. 3 touch my property. And MANY shortsales...HUGE homes for sale for 150k to 199k... Is it wise for us to walk away?
The question you ask is really not a legal question, it is more of a family business decsion that should be based upon a number of factors. Among them is your personal financial situation and whether the payments are difficult to maintain, if your family loves the home, is it convenient to work and schools, what you believe the long term prospects are for the neighborhood, where you would live if you walk away, what impact walking away will have on your future ability to buy a home, etc.
Thes are not questions for your lawyer, but rather questions that you as a family must discuss and answer. Once you made your decision an attorney may assist you in carrying it out, but the reasons for the course of action are more for you than your lawyer. Good luck.
