Fannie Mae Wants Another Letter...

Mike Orowitz

LoanSafe Member
Mar 13, 2017
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I have a Fannie Mae mortgage with BoA in NC. House has been vacant for 2-3 years. I've been trying to get them to agree to DIL for several months when I stopped making payments. They pushed me through modification process even though I stated that I had no intention of keeping the house. It's like talking to a brick wall. Even though I have had the same customer relationship manager the whole time, she acts like she never heard what I've said to her on a dozen or so prior calls.

Anyway, we finally got to DIL. Based on the appraisal that BoA got, the property is worth about 90k (double-wide deeded together with land), which is about the same balance as the note. However, there are significant issues accessing the property since the development has a private road in terrible shape with no road maintenance agreement in effect and few willing to contribute towards upkeep. It is nearly impossible to find a lender for such a property, and anyone with 90k in cash isn't going to spend it on this place.

Fannie Mae offered DIL terms with a $9,000 promissory note. I counter-offered a much lower cash payment up front, but no promissory note. The bank says Fannie Mae wants a letter explaining why I can't agree to the promissory note. (Umm...because I can't afford it?) I already explained my financial situation in the initial hardship letter.

Any advice as to what they would expect in such a note? I have to respond before the end of the week.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
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Congratulations on getting this far! Geeting a deed in lieu is one of the hardest loan workouts to be granted.

If I were you, I would just emphasize that you can't afford it and would not be able to make payments. If they refuse, sign it and then claim bankruptcy later and wipe the debt out.