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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 693
Location: OHIO
123.43 Dollars($)
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 Posted: Wed May 21, 2008 2:48 am Post subject: RE: deed in lieu on loans with different lenders |
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Hi Robert,
I don't think a deed-in-lieu will be a good option here. How about an alternative payment plan with one of your lenders? will you then find it easier to repay both the loans? or say if you don't want to keep the house and it isn't selling, why not offer it for lease to purchase so that the lease payments will help you repay the loans. For this, you need to find out lease payments in your area and then check if the figure is good enough for you to pay off your debt.
I don't think if you ask the first lender for a deed in lieu, he'll agree because he'll have to pay off the second as because he'll be getting the ownership rights with the second lien on the home.
Regards,
Jessica
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needinghelpinflorida
Guest
0.10 Dollars($)
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| Posted: Wed May 21, 2008 6:25 am Post subject: timeshare help |
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| my lender is the timeshare company Island One theydo in house lending I have been asking for a contact in the legal dept which is supposedly handles their mitagations and all I can get is collections they tell me I am not far enough behind for that kind of action and I try to explain I am trying to be proactive so both parties dont waste time stretching the process out and they say they have to give due diligence and will continue harassing collection attempts I am seriously about to have my home phone shut off because they keep calling so much yet when i answer the phone its a stupid automated call from a computer.I seriously think they are trying to drive me to the brink of insanity and trash my credit completely before they let go. |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 290
Location: Houston
64.95 Dollars($)
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| Posted: Wed May 21, 2008 11:56 am Post subject: |
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Good to hear back from you needinghelpinflorida,
You may want to speak to a time share specialist. Someone who sells time shares so that they can sell your portion. Of course you will have to pay them a commision but, your lender appears to be waiting for you to fall further behind before they consider workout options.
Another option would be to have an attorney review your documents to see if there are anyways for you to get out of the time share.
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Cliff Pape
Market Analyst
www.home-buddies.com |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 290
Location: Houston
64.95 Dollars($)
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| Posted: Wed May 21, 2008 12:13 pm Post subject: |
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Hi Robert,
I agree with Jessica I do not believe a deed-in-lieu is your best option. Florida is a tough market right now and I would not trust what your realtor is telling you he/she believes what your home would sell for. You need to definitely get an independent appraiser to appraise your home so you know what you are really looking at (i.e. the true value of your home). I know spending money on something you’re trying to get rid of seems crazy but, this will allow us to better understand what your best option is.
Meanwhile what Jessica said is right “contact your lenders” and talk to them about options and see where they stand at this point. Typically they will not want to discuss anything until you have fallen behind on payments but, at least they will have in their notes that you contacted them trying to work something out. MAKE SURE AND GET THE FIRST NAME AND LAST NAME OF WHO YOU TALK TO. If they will not give you there last name ask them for their code. This will ensure when you call back they will have an easier time looking up in their notes the conversation you had with them.
Do not worry we are here to support and help you through this situation. 
_________________
Cliff Pape
Market Analyst
www.home-buddies.com |
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Concerned Dad
Guest
0.10 Dollars($)
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| Posted: Tue Jun 03, 2008 9:55 pm Post subject: Deed in Lieu |
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My son refinanced his home a couple of years ago, with a negative amoritization loan, buying all the arguments that his home would increase in value. We all know what has happened to the market. He has a prepayment clause in his loan, which in four months goes away, but - his house payment will double. He already knows he cant afford the increase, and he now owes more on his loan that his property is worth. He has been advised by a realtor that his best option is to hope for a Short Sale, and by another buisness man to try for Deed in Lieu of Foreclosure.
He finally began talking with his Lender today (about a year to late in my opinion) to find options. However, in the research I have done, the lender will not entertain a short sale until an offer has been made, (his house is not on the market), and a Deed-in-Lieu can't even be executed until he is already in default - and he must occupy the home when the agreement is executed.
Am I correct on both of these observation? What other options might he have. As stated on the HUD site, he would NOT want to puposely default the loan just to qualify.
The other negative he has is that the property is in California. |
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larry
Joined: 27 Jun 2007
Posts: 3328
473.40 Dollars($)
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| Posted: Wed Jun 04, 2008 12:25 am Post subject: |
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Hi Guest,
Welcome to the forum.
I would not suggest you to be delinquent on your payments as it is not the way to go but the lender is not interest in short sale or deed in lieu because he may have so many clients who are in even worse condition than you. BTW the market is down but can try out something like forbearance or Loan modification.
Check out how you can protect yourself from the foreclosure trap at http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Hope it helps.
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: 290
Location: Houston
64.95 Dollars($)
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| Posted: Thu Jun 05, 2008 6:52 am Post subject: |
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Hi Guest,
Larry makes an excellent point lenders are now doing loan modifications. Typically what they will do is as follows.
1. They will allow your son to be put into a fixed loan and if he is behind on taxes, insurance etc. they will also roll that into the loan. All this would be done by his existing lender.
2. A short sale is the best alternative option but, he would need to put the house on the market. IN ADDITION, FOR YOUR SONS SAKE MAKE SURE HE WORKS WITH A REALTOR WHO IS FAMILIAR WITH THE SHORT SALE PROCESS! I only say this because it is not an easy process and most realtors do not understand how to work a short sale.
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Cliff Pape
Market Analyst
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Jeanna
Guest
0.10 Dollars($)
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| Posted: Thu Jun 05, 2008 10:25 pm Post subject: Deed in Lieu of Foreclosure/Any Options for 80/20 Loans |
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| Hi we've recently consulted a bankruptcy lawyer and still don't know what to do. We are up to date on our mortgage which is an 80/20 held by two separate lenders. Countrywide and First Franklin. We are still trying to find options other than bankruptcy or foreclosure. The combined money we pay out a month in credit card debt (we've enrolled in credit counseling and reduced that payment), but it's not enough, with our living expenses (just had our first baby in Nov. and mortgage we just can't make it anymore) We've had our house on the market going on 5 months and according to Countrywide our house market value has dropped below the amount owed. We had tried to refinance with Countrywide at least three times with no luck since we have no equity in our home at interest only loans. I didn't know if you knew of any options that would work when we have two separate lenders to deal with. I did see that Deed in Lieu of Foreclosure was an option if you were working with one lender and the home was valued at least for the amount you owed on the loan. Is there anything we can do that would be similar to this. We've read about short sales to, but again don't know how the two lenders changes the process. Please if you have any advice or information. We would really appreciate it! Thanks for your time. |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 290
Location: Houston
64.95 Dollars($)
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| Posted: Fri Jun 06, 2008 11:52 am Post subject: |
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Hi Jeanna,
With two lenders you can still do a short sale which by the way is probably your best option. Lenders typically will not accept a Deed in Lieu (DIL) when more is owed on the property than it is worth.
You will need to hire someone who is a “short sale specialist” this is someone who has worked multiple short sales and is familiar with the process. Basically what they will do is negotiate with your first lender. They will also negotiate with your second lender to accept a minimal payoff.
Once you have completed the short sale you will need to enter into a credit restoration program in order to get your credit back up to par. I know this may seem like a lot but, it is definitely possible.
Hope this helps if you have any further questions feel free to ask.
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Cliff Pape
Market Analyst
www.home-buddies.com |
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K-girl
Guest
0.10 Dollars($)
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| Posted: Tue Jun 10, 2008 8:50 am Post subject: Best Option? |
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| Is Deed-In-Lieu is best option for us? Bought our house in Jan'07 and due to husband’s commission only job not really working out we've been paying half our bills with credit cards. Realizing we needed to rectify the situation before we sunk any deeper I found a good salaried job in another state and husband has found work too - still commission but small salary so we have relocated 7 hours away. House has been on market for 4 months with NO offers. We have about 25,000 in equity and have our house priced where we are paying commissions to our realtor but walking away with nothing in our pocket. We are priced right and in a great area but still no interested buyers. If Deed-In-Lieu is best option how long does this adversely affect credit scores? Will my credit be hurt too? I am on the deed only - not the loan. |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 290
Location: Houston
64.95 Dollars($)
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| Posted: Tue Jun 10, 2008 4:35 pm Post subject: |
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Welcome K-girl,
If you are not on the mortgage it wil not affect your credit score. Also, credit is easily restored with the proper advisor doing the credit restoration.
You need to ask your realtor what the "median days on market" are for your neighborhood. This will help me advise you if a deed-in-lien (DIL) short sale is better for you. Here is a brief explanation of both.
Short Sale: A "short sale" is a sale of the property for less than the total amount owed on the mortgage. If the home owner owes more on their property than it is worth, an investor (we can arrange you with an ethical investor) may be able to convince the mortgage company to accept a short sale. Most lenders would rather have the majority of their money back than the hassle of a foreclosure, legal fees, renovation, and marketing costs associated with the reselling of the property.
Deed-in-Lieu: A Deed in Lieu of foreclosure (DIL) is a disposition option in which a mortgagor (home owner) voluntarily deeds the property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from home owners who can financially make their mortgage payments.
Depending what information you provide me with I will be better able to tell you which option your lender will go for.
Hope this helps. Any other questions you need answered I'm her for you.
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Cliff Pape
Market Analyst
www.home-buddies.com |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 693
Location: OHIO
123.43 Dollars($)
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| Posted: Wed Jun 11, 2008 5:59 am Post subject: RE: deed in lieu may be the best option here |
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Hi K-girl,
It's good that you realized that you shouldn't be paying bills with credit cards. After all, it's like paying off debt while at the same time piling up more and more debt. But it's good that you've got a well-paid job now. At least you can pay off your credit card debts as it's no use accumulating them.
As for the mortgage, I think a deed-in-lieu may be the best option for you because the house isn't selling and you need to relocate too; so how long can you wait.
Regarding your credit getting affected, well that's for sure to happen but if you don't trying paying the debts it's going to have a bigger impact later on. Your credit score is likely to drop down by 250 points if you go for a deed-in-lieu. But I think that's the only way out for you right at the moment.
Regards,
Jessica.
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K-girl
Guest
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| Posted: Wed Jun 11, 2008 10:22 am Post subject: Thanks for the replies |
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| Average time on market is 270 days (9 months). And time is not on our side because since we relocated a few weeks ago - so I could start my new job - we are staying with my parents in a retirement community with very strict HOA restrictions regarding the 'length' that guests can stay. We have to secure housing by mid-July. We have a friend who owns a home which will be available to rent around that time that is ours if we want it. While I'm making good money I will not be able to afford the mortgage plus the 'new' rent and all our other bills without having to lean on credit cards again. I have not had any lates on the house and we are current. When I talked to the bank I got the impression we would not qualify for a short-sale, but they are sending us paperwork regarding a deed-in-lieu. They told us we had to be on the market for 3 months with no reasonable offers to qualify. Well we've been on since 2/25/08 with only 5 showings. We are in a rural area - even though we are considered a bedroom community of DC - it's at least 90 minutes by train - and houses in our neighborhood are prices 325K and above. Difficult to move in a rural area but we do get some commuters who had rather trade in a longer ride to work for more affordable housing and the small town feel. Thanks for all the advice. |
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K-girl
Guest
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| Posted: Wed Jun 11, 2008 10:24 am Post subject: forgot to mention ... |
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| BTW: We do not have any second liens on the house or anything like that. Guess this makes a difference in the deed-in-lieu world. |
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cliff
Community Experts
Joined: 05 May 2008
Posts: 290
Location: Houston
64.95 Dollars($)
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| Posted: Wed Jun 11, 2008 2:15 pm Post subject: |
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Yes it does make a difference. It sounds like a DIL like Jessica said would be your best option.
Make sure to carefully fill out all the paperwork the mortgage company sends you. Mortgage companies a notorious for not starting work on DIL just because all the paperwork is not filled out correctly.
If you need more help just feel free to ask. We are here to support you.
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Cliff Pape
Market Analyst
www.home-buddies.com |
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