[Futti]

...lieu of foreclosure and then changed it into a foreclosure? My husband and I were about to lose our home. The mortgage company sent us some papers from their bankruptcy department offering for us to do a deed in lieu of foreclosure. After we signed the paperwork and returned it to them they decided to proceed with a foreclosure (3 months later). Can they do this?

[OldJimmy]

I think they can decide to do this, but it seems awfully odd. If you haven't already, I would contact them and ask them why the change? It may be something a simple as a paperwork mixup or two people working your account that aren't communicating with each other. Don't just roll over without finding out what's up.There are so many problems like this being managed by mortgage companies these days, with reduced staff fearing a layoff themselves, and not as well trained as they used to be, that the likelihood that it is just a clerical mistake of some kind is very high. Don't ignore it without having someone look into it for you.

[loanmod]

Sometimes, the lender doesn't proceed with a deed in lieu of foreclosure if the outstanding indebtedness of the borrower exceeds the current fair value of the property. but your case is peculiar because your lender agreed to this option initially. You should inquire about this from the concerned department or still better option would be to hire an expert attorney to handle your case.