Question: I gave my home (wyoming) “deed in lieu” back to the bank in may of 2011 and they have done nothing with it… there is water and mold damage to the home now. home worth approx 185000,loan 200000 principle,approx 40000 in damages. the city has been doing on the home since jan 2011 and have been told they will turn me over to collections if i don’t pay?? i am curious if there is a chance the bank just walks away from it and if so am i still responsible for upkeep? thanks
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Who is asking that you pay? Deed in Lieu foreclosure is very similar to a foreclosure. Some refer to it as a “friendly foreclosure”. You are basically giving the property back to the bank, which they take in it’s current condition. Even though the bank might do this, you are still responsible to take care of any junior lien holders. I’m guessing that’s who’s asking you to pay. The city may have had an interest in the property at some point. I would try to settle with them. They are obviously going to ask you to pay a premium, but I’d try to settle with them on some ridiculous low price and if they didn’t accept, I’d have a good real estate agent do it for me who knew what they were doing or hire an attorney. Or do nothing and see if they are just blowing smoke. You can always file bk and wipe it out completely.