Posted on: 21st Sep, 2009 01:10 pm
Purchased a condo in 05' for $300K. Current comps are around $92'K. Bank would not approve short sale. Bank contacted us about a deed in lieu of forclosure. What is going to happen from here? Will we be held responsible for the outstanding $208K? What will happen to our credit? How long will this stay on my credit? Will I ever be able to buy a house again? Is deed in lieu of forclosure my best option? AHHHHHHH!!!!!!
Hi T town,
It is good that your lender has offered you a deed in lieu of foreclosure. Under this process, you won't be responsible for the deficient amount resulting from the deed in lieu sale. However, your credit would be badly affected due to this. It will get lowered by 250 points. Moreover, as a negative item, it would remain in your credit report for 7 years.
It is good that your lender has offered you a deed in lieu of foreclosure. Under this process, you won't be responsible for the deficient amount resulting from the deed in lieu sale. However, your credit would be badly affected due to this. It will get lowered by 250 points. Moreover, as a negative item, it would remain in your credit report for 7 years.
If the bank as offered you deed in lieu, you do ntoneed to pay the deficient amount
But your credit report will have a big dent around 250 to 300 points
But your credit report will have a big dent around 250 to 300 points
Does anyone know if this option is better than a shortsale and if so in what way?
If you do short sale then you may be liable to pay the deficient amount
With deed in lieu you are not laible to pay the deficent amount
You need to decide between loosing credit score or payign the difference amount
With deed in lieu you are not laible to pay the deficent amount
You need to decide between loosing credit score or payign the difference amount
Both the options are designed for specific cases. there is no best case. it all depends upon your present condition & future need.
if you can improve your credit score, DIL is better.
if you can pay deficit & in need of another mortgage in a near future, Short Sale is better
if you can improve your credit score, DIL is better.
if you can pay deficit & in need of another mortgage in a near future, Short Sale is better