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DIL-weed
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0.10 Dollars($)
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 Posted: Tue May 06, 2008 5:10 am Post subject: Foreclosure vs DIL |
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| Larry et al, My first mortgage is fixed 5.5 and my equity line is prime plus 3/4%. My core issue is that my wife is no longer working and we have a lot of medical bills that will conitunue to add up. We are no longer financially able to meet the monthly mortgage and 2nd. After trying to sell the house for the last 9 months we are starting to reach the end of our financial means to make all of our monthly financial commitments. I'm trying to fully understand if I go the DIL route if my credit will be scared long term and if the 1st mortgage company sells the house if everything over their selling price would go to pay the 2nd automatically since they're a lien holder. If the total amount selling the house doesnt cover both, would I likely then be responsponsible for the remainder of any outstanding balances - which could be 100K - 200K, depending on what they may be able to sell the house for given the current market conditions. IF Im still liable and responsible for any remaining monies, as indicated of the possible amounts, I'm thinking then that I would have to go the Bankruptcy route to get relief from the debt. As you can read from this and my previous posting, Im trying to get a full picture of my exposure and plan accordingly. This situation of oweing money and not being able to pay my creditors is a completely new thought process for me as I have always maintained my credit and debt within the highest sense of importance and have never been late on any payment for 30 years. Thanks again for your advice! Larry, thanks for responding - Brian. |
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larry
Joined: 27 Jun 2007
Posts: 2911
403.68 Dollars($)
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| Posted: Tue May 06, 2008 6:04 am Post subject: |
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Hi Brian.
Welcome back.
Now you cannot sell your property right. So if you go for deed in lieu of foreclosure then both of the lenders will have to agree. If the second lender do not agree then there is no use going for DIL because he can come after you for the due debt.
So I think it is better if you file Bk chapter 13. Thus you can protect your property and the lenders also cannot come after you. You can pay the mortgage with an affordable repayment plan. Check out how Bk chapter 13 works at http://www.mortgagefit.com/bankruptcy/foreclosure-chapter13.html
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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khausteen
Joined: 06 May 2008
Posts: 1
1.58 Dollars($)
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| Posted: Tue May 06, 2008 3:35 pm Post subject: Deed in Lieu of Foreclosure |
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| I own a house, in my name only, married and moved into husband's home, have tried to sell my house, tried to rent it, no luck on either. It is an older house, newer and new ones for sale at same price. I also have a second on the house. My husband recently lost his job, so our income is greatly reduced. I have been using credit cards to make ends meet. I feel I must rid myself of the house payments - both the first and second. I was advised of a Deed in Lieu of Foreclosure being a way to solve my predicament. What can you tell me? How does this work with the second? I was told a short sale would not work because of the amount owed for both of the loans. I do not know what happens to the second when the first gets the Deed (the first could sell the house for what the first loan is - it is the second that I am very worried what they will/could do). I will appreciate hearing your opinions and thoughts on this. Thanks |
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helping_user
Joined: 31 Mar 2006
Posts: 674
Location: Hawaii
125.85 Dollars($)
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| Posted: Wed May 07, 2008 12:59 am Post subject: RE: what happens to second mtg after dil on the first |
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Welcome Khuasteen.
I can understand your situation and I think deed-in-lieu is the right way to get out of the debt on your home. This is because even if you lose this home, there is at least your husband's home, so it's not that you have to rent anywhere.
Now, when you say you're using credit cards to make ends meet, it's something serious and your finances are not in control then. Well, I suggest you try to look out for a part time job or freelancing at least so that you can carry out daily expenses. Avoid using credit cards for daily spending because this will add on to your debt which you need to pay off.
Now, when you go for deed-in-lieu, it's like you are giving away your property to the first lender. So, the second lender can obviously ask for his payments. Ideally the first lender should pay off the second. But the first may not be able to retrieve the sale proceeds as much as is required to satisfy the balances on both the loans. In such a case, the second lender may charge-off the debt.
To know more on what happens to the second after deed-in-lieu on the first , refer to a previous discussion on this topic.
Thanks. |
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Eddy
Guest
0.10 Dollars($)
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| Posted: Tue May 13, 2008 11:53 am Post subject: deed-in-lieu |
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| I am in the middle of a deed-in-lieu. If the lender does not forgive me of all debt after they sell my house, can they come after my car or motorcycle if I am making payments on them? Can they make me sell them if I have equity in them? Thanks for your help.. |
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larry
Joined: 27 Jun 2007
Posts: 2911
403.68 Dollars($)
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| Posted: Wed May 14, 2008 1:57 am Post subject: |
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Hi Eddy,
Welcome to the forum.
If the lender accepts DIL then generally they don't come after you for the deficiency judgment. So there is no question to place lien on you car or motorcycle. But you should consult it with the lender.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 221
Location: Houston
48.30 Dollars($)
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| Posted: Wed May 14, 2008 5:42 am Post subject: |
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Hi Eddy,
The lender has no right to your other assests because they are not secured by the deed of trust. In other words they only have right to the property and that is it.
_________________
Cliff Pape
Market Analyst
www.home-buddies.com |
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needinghelpinflorida
Guest
0.10 Dollars($)
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| Posted: Mon May 19, 2008 4:33 pm Post subject: Timeshare deed in lieu |
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I have been paying religiously for 4 yrs on a timeshare each time I try to use I get the run arround I have asked them to sell it as it states in my contract they will and they say that i need to dspeak with whoever wrote that as it is not part of my actual mortgage contract and of course hse no longer works there the manitanence and taxes were supposed to bill biannualy as I own a biannual week and i still get billed every week I cant get a straight answer as to how much I owe left so I could get a personal loan and pay it off and give it away to a charity or sell on ebay for $1.00
so I have refused to pay anymore I am not planning on buying a home over the next 3 maybe 4 years but I am sure will want to buy a car in a few years when my husbands truck is paid off as mine is getting older now. but our credit is ok right now a few blemishes only 1 that is not related to this disaster of a timeshare. would a deed in lieu be in my best interest? also they are telling me they have to wait until the account is severely delinquent to do it is this true or just another lie? Is there anything that I need to know going into this process. |
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needinghelpinflorida
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0.10 Dollars($)
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| Posted: Mon May 19, 2008 5:55 pm Post subject: edit |
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| the maintanence and taxes are billed every year not every week oops. |
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larry
Joined: 27 Jun 2007
Posts: 2911
403.68 Dollars($)
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| Posted: Mon May 19, 2008 11:12 pm Post subject: |
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Hi Guest,
Welcome to the forum.
If you cannot afford the mortgage then talk with your lender and ask him for deed in lieu. I am quit surprised to hear that the lender is not telling you how much you still owe to him. He can avoid you but you should try again and again. It is his duty. BTW if you can pay him off that is better otherwise request him for the deed in lieu.
Feel free to ask if you have any further questions.
Best of luck,
Larry |
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needinghelpinflorida
Guest
0.10 Dollars($)
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| Posted: Tue May 20, 2008 12:16 pm Post subject: thank you |
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| thanks for the input I have aske them to do the deed inlieu but what they tell me is they wont do it until it gets turned over to there legal dept. I am trying my hardest with this co. but they are impossible to deal with I have been calling and calling and they will not take my calls so I have resorted to emails and certified letters to contact them I am just so tired of the timeshare at this point I dont even care i just want it gone |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 221
Location: Houston
48.30 Dollars($)
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| Posted: Tue May 20, 2008 2:47 pm Post subject: |
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Hi needinghelpinflorida,
What is the name of your lender? We work with alot of lenders and I'm surprised how rude they have been to you. I'm sorry to hear you are having such a difficult time. Also, have you been able to get in touch with your lenders loss mitigation department?
_________________
Cliff Pape
Market Analyst
www.home-buddies.com |
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Sandra
Guest
0.10 Dollars($)
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| Posted: Tue May 20, 2008 6:31 pm Post subject: Foreclosure deed in lieu of forclosure |
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| My home is in forclosure. What is the time frame for deed in lieu of forclosure? I am in the redemption period and have aprox2 months left. |
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Robert Taylor
Guest
0.10 Dollars($)
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| Posted: Tue May 20, 2008 6:53 pm Post subject: Deed-lieu-of-Foreclosure Article when two lenders involved |
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Own a former primary home in Florida with a first in line lender and a loan of $295,000 balance. 8 yrs.-no missed payments.
Second in line HELOC on the property of $327,000 thru a different lender (Countrywide).
Total thus is $622,000. 4 years---no missed payments.
Home is currently listed with a Realtor at $687,000 (down from original $869,000). Been on the market 18 months.
Actual value in that market should be above $600,000 somewhere.
Am about out of financial reserves to support those two payments plus my primary home payment here in NC.
Some SSA income plus wife's small pension. Gone back to work in real estate but very limited income success.
Any recommendations such as Deed in Lieu process or other process?
Many thx,
Robert |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1340
Location: florida
222.66 Dollars($)
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| Posted: Wed May 21, 2008 2:28 am Post subject: RE: sandra - time frame for deed-in-lieu |
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Hi Sandra,
Welcome to our forums.
Do you want to know the time period upto which you can go for deed in lieu right after the redemption period ends? well, this will vary from one state to another. I think if you're planning for dil, better talk to the lender now so that you too will come to know whether he's ok with it or may be he'll suggest something lese. By the way, do you still ahve dues left on your mortgage? i mean is this the equitable right of redemption under which you need to pay the arrears?
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