Lender won’t accept deed in lieu of foreclosure

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DEAR BOB: Our home is in a depressed area where there are lots of houses for sale but few buyers. We had to move due to illness and unemployment. After listing our home for sale with no offers, we asked the lender to accept a deed in lieu of foreclosure. The lender wrote back, "It is against our policy to accept a deed in lieu of foreclosure." We had to stop making mortgage payments because we could no longer afford them, so why does the lender let our vacant old house fall into vandalism and foreclosure instead of accepting our deed in lieu of foreclosure? --Wallace C. DEAR WALLACE: Some mortgage lenders are not very smart. Especially if you have a VA, FHA or PMI (private mortgage insurance) mortgage, you might be caught in the lender's bureaucracy where nobody wants to make a decision. Purchase Bob Bruss reports online. A deed in lieu of foreclosure means the borrower deeds the property to the lender. The benefit for the lender is avoidance of foreclosure costs and del...