deed in lieu or other options

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We live in Florida in an area that is severely impacted by the current market trends etc. I have requested a loan mod program to the mortgage company and they say it could take up to 60 days for a response. we cannot wait that long, can we in the meantime submit the DIL request as well to show them that after looking at our situation a loan mod is not going to solve our situation....we are victims of the 2 year arm nightmare that raised our mortgage approx 500 dollars each month....our credit has plummeted too so a refi is not an option either.....what do we do if the mortgage company drags their feet and doesnt work with us? What are our options then....when a mortgage company that outsources their employees to other countries and they can barely speak the language let alone understand what is going on here? How do we fight back?
I am willing to risk the credit hit cuz our credit is already poor but how long does that DIL impact our scores?

livinginnky · Posted: Thu Sep 27, 2007 5:04 pm Post subject:

A foreclosure is not the end of the world. I know, it is easy for me to sit here and say that, but trust me it isn't. If you work hard on rebuilding your credit you can get a mortgage as quickly as 2 years from now. But the important thing is you need to rebuild and keep a strong payment history from now until then.

You will want to talk to an attorney in your state to see what rights you have to fight with. Then you can formulate a game plan on what to do next.

Caron

Hi Cj,

Welcome to our forums.

Instead of anticipating that there might be problems, you should wait till your mortgage company gives you a response as to whether a loan modification is possible. You've said your credit has plummeted so refinance isn't possible – but how much has it gone down? Is it somewhere around 600, then a refinance may be possible. I think you should shop around with lenders while your loan company sends you their approval for loan modification. And then if you find that the company isn't agreeing to a modification, you can request them for the deed-in-lieu.

As far as the credit effects of deed-in-lieu are concerned, it won't hurt you as much as a foreclosure does. But certainly there will be some negative impact on your credit report.

Good luck and let's hope for the best Smile

larry · Joined: 27 Jun 2007 Posts: 2925 406.27 Dollars($)

Hi Cj,

A deed-in-lieu of foreclosure will have a negative impact on your credit report and it may drop your credit score by 100 points or more. It may take you a long time to rebuild your credit after a deed-in-lieu and it will stay as a negative item on your credit report for a long 7 years.

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