Real Estate Foreclosure

[Artdiver]

my wife and I bought some vacant land 2 years ago . The owner took a large downpayment and agreed to carry the rest for 4 years. We made the payments for almost 2 years and than the market crashed. She agreed to give us 8 months without any payments and we put up some adjoining land as collaterol. The deadline was March 21, 2008. We could'nt come up with any money... we have been trying to sell the property and we were in negotiation with buyers up until 1 week ago. The sale has fallen out. We recieved a summons telling us the mortgagee wanted to foreclose on the property. We have always told her we would gladly give back the land if we couldnt hold onto it or sell it. Her attorneys also sent a Warranty Deed In Lieu Of Foreclosure. They want us to sign it and they said it would all be over. But, they still want us to respond in writing to the Summons.... We're not sure what to do. We do not want them coming back to us for any legal fees or taxes, etc.... how should we proceed?

 

[Michael Wechsler]

Get a written agreement documenting what you want that is signed and executed by both parties. Do remember that virtually no one will want to close off their rights for remedies to recover their costs due to your default - would you?

 

[seniorjudge]

The deed in lieu of is a good out for you.

Take it.

Also, yes, you must respond to the lawsuit.