Deed in lieu option

I am looking for a bit of advice.

I am working with a woman 4 months behind on the first and 2 months behind on the second.

I called the bank(EMC mortgage) and they said that deed in lieu of foreclosure may be an option. I informed the homeowner of this and said that she should submit the necessary paperwork to see if a deed in lieu could be granted, and if a deed in lieu would not work, I would attempt a shortsale. She said she would get paperwork for deed in lieu to bank, but has been a bit lazy about getting the paperwork over to the bank.

Meanwhile, I have put together a shortsale package if the deed in liue falls through. At this point, I was wondering if there is anything that I can do to incentivise her to attempt the shortsale. I know I could not give her money from proceeds of the shortsale, but is there anyway around this? Might I be able to attempt the shortsale, and if I can tell its not going well, fall back to the deed in lieu option? I am confident that I could get a buyer quickly after shortsale approval.

Any suggestions or advice?

Gregg Eller

Is EMC the servicer on both loans? You do understand that the holder of the first will not accept a DIL because it would be subject to the second, yes?

EMC is the servicer on both loans. That never registered for me- so a DIL is not even possible?
I learn something new everyday.

It is possible if EMC is the servicer on both, but if there are different investors or underwriters, there may still be a problem.

DIL should be your last gasp at keeping a foreclosure off her records.

I’d work the short sale first.

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