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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] deed-in-lieu of foreclosure question Posted by Stacy on January 09, 2003 at 2:11 PM Thank you in advance for any help! My sister and her husband held a 1st and 2nd mortgage on their home. They signed a deed-in-lieu of foreclosure with the holder of the 2nd mortgage. The 2nd mortgage holder then failed to file the deed-in-lieu and the 1st mortgage holder foreclosed and sold the home for just enough to recover their amount. My sister has been informed by the 2nd mortgage bank's lawyer (who was the one who recommended to deed-in-lieu in the first place) that the bank will eventually sue them for the amount of the 2nd mortgage. Is that legal when they signed the deed-in-lieu? It seems as if it is the bank's fault for not filing the paperwork. My sister and her husband (who are getting divorced) are contemplating filing bankruptcy because they don't have the money to pay the amount of the 2nd mortgage. I don't want my sister to just sign bankruptcy papers because she thinks that is the only way. Of course, ultimately it's her decision. Any advice would be greatly appreciated!!!!!! Thank you. Stacy Follow Ups: I don't think the lender will follow through Ward-CA- 10:17 AM, 01/10/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Thank you in advance for any help! : My sister and her husband held a 1st and 2nd mortgage on their home. They signed a deed-in-lieu of foreclosure with the holder of the 2nd mortgage. The 2nd mortgage holder then failed to file the deed-in-lieu and the 1st mortgage holder foreclosed and sold the home for just enough to recover their amount. My sister has been informed by the 2nd mortgage bank's lawyer (who was the one who recommended to deed-in-lieu in the first place) that the bank will eventually sue them for the amount of the 2nd mortgage. Is that legal when they signed the deed-in-lieu? It seems as if it is the bank's fault for not filing the paperwork. : My sister and her husband (who are getting divorced) are contemplating filing bankruptcy because they don't have the money to pay the amount of the 2nd mortgage. I don't want my sister to just sign bankruptcy papers because she thinks that is the only way. Of course, ultimately it's her decision. : Any advice would be greatly appreciated!!!!!! : Thank you. : Stacy Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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