As a mortgage lender the bank is not there to sell the borrower’s home. That is why 9 times out of 10 it is better to go through a short sale for all the parties involved than to let it go to foreclosure. There does not need to be a delinquency but it is an just a factor in many cases. So when does a Deed-in-Lieu (DIL) come in to play? Well every lender has different guidelines. GMAC is no exception to the rule and they ask that the property be listed for a period of no less than 90 days with no offers.
Unconventionally they are currently asking for the homeowner to provide the Original HUD from the title company from when the property was purchased. They will also need a supplemental hardship letter explaining the intent to deed the property back. Additionally they are also asking for the last two months bank statements, income for personal house hold of the borrower along with the last two pay checks. There is a hardship package that can be found at GMAC’s website which also includes a hardship affidavit and 4506t form. From the real estate agent the lender will ask for a listing agreement for the period demonstrating the 90 days of being listed with no offers.
This will typically take us 30-45 days to process as per the lender’s current quoted time frames. If there is sale date not allowing for the 30-45 days to be review this program with the lender state that this will not be possible.