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Lauren2v
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Post subject: Deed-in-Lieu vs. Short Sale |
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I currently have an option to sell a rental property I own via short sale to an investor or give the house back to the lender as Deed-in-Lieu. Can you tell me which option would be better for me as far as credit goes, taxes etc.
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Niicss
Joined: 03 Oct 2005
Posts: 4770
Location: New Jersey
499.28 Dollars($)
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Post subject: |
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Welcome Lauren.
Short sale is a better option compared to deed in lieu of foreclosure and it will have less negative affect on your credit report. So have you contacted with the mortgage company and asked for options available for you. You can even go for loan modification or forbearance. Take a look at 17 ways to protect yourself from the foreclosure trap .
By the way in case of short sale you will have to pay tax if the sale price is lesser than what you owe to the Mortgage Company or lender.
Hope to see you on the forums.
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Good is the Enemy of Great. |
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Gd
Guest
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Post subject: deed in lieu/bankruptcy |
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| My bankruptcy has been discharged and my 1st mortgage company is proceeding with foreclosure. Should I let the foreclosure continue since I have not obligation or should I seek a deed in lieu? How will this affect the 2nd mortgage? |
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Niicss
Joined: 03 Oct 2005
Posts: 4770
Location: New Jersey
499.28 Dollars($)
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Post subject: |
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Welcome Gd.
Is the bank bankruptcy discharged or dismissed? Have you filed chapter7 or chapter 13. We need to know these to answer your questions.
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Good is the Enemy of Great. |
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Gd
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Post subject: |
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| We filed chpt 7 and it is discharged. |
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Johnny1
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Hello Gd.
In bankruptcy chapter7 all the assets are sold to pay off the lenders or creditors. But there are some exemptions. So was the property you primary residence and was it exempted. As far as I know after filing chapter7, the borrower is released from all his debts and all his assets are sold. So is the property being sold under chapter7? |
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Gd
Guest
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Post subject: |
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Hi Johnny1,
Thanks for the response. My bankruptcy did not work like that at all. I kept everything and nothing was taken from me to be sold. I can walk away from everything now that the discharge is final - I have no obligation to any of my previous debt. I will eventually turn in my cars when the banks come to get them. As far as my home, it is my primary home and the first mortgage company is proceeding with foreclosure. I am basically looking for the easiest way to end this entire mess and not have to pay taxes etc.. because of the second mortgage. |
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cv grl
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Post subject: deed in lieu |
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| is rental property qualified to do deed in lieu of foreclosure the property is in arizona who is qualified for the deed in lieu or foreclosure |
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larry
Joined: 27 Jun 2007
Posts: 3322
474.67 Dollars($)
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Hi Gd.
Talk to your first lender ASAP and request him to accept the deed in lieu.
hi cv grl.
It depends upon the lender whether he accepts the deed in lieu or not. Basically it saves the legal fees of the foreclosure process and that's why lenders generally accept the deed in lieu. So tale to your lender and request him to accept the DIL,
Feel free to ask if you have ant further questions.
Best of luck,
Larry |
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bazooka
Guest
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Post subject: |
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| I have two mortgages on my loan, How do I go about doing a "deed in lieu of foreclosure" on both loans |
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cliff3
Community Expert
Joined: 05 May 2008
Posts: 328
Location: Houston
75.44 Dollars($)
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Post subject: |
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Hello bazooka,
Let’s begin by pointing out to you some very important facts for you to seriously consider before you choose a Deed in Lieu (DIL). There are certain eligibility requirements that you must meet, before your lender will even entertain the option to accept a Deed in Lieu from you:
• Are you imminently facing foreclosure? Are you at least 31 days delinquent?
• Have you exhausted all means to avoid foreclosure?
• You, the borrower, must voluntarily submit a written offer of the Deed in Lieu and it must specifically state that the offer to enter these negotiations is being made voluntarily. You must list all the conditions for which the DIL will be accepted. Including the agreed upon transfer date of the property. On that date, the property must be vacant and clear of all your personal property.
• Usually the lender requires that you have listed your home with a Realtor for at least 30 days. They need to see that you have attempted to sell the property, but that you have been unable to sell the property. They prefer for
I am concerned that you have not mentioned that you have contacted your lender. Your lender has many other options available to you, besides a DIL.
Contact your lender and see if you qualify for a Repayment Plan, A Special Forbearance, A loan modification, or even a Short Sale. All these options are available. But you must be communicating with your lender! Any of these options are much better for you and much better on your credit than a Deed In Lieu.
Let us know if you have other questions, or need more help still. Visit home-buddies.com and view the free step by step guide to mortgage problems.
Good luck.
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Cliff Pape
Market Analyst
www.home-buddies.com |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 808
Location: OHIO
435.63 Dollars($)
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Post subject: RE: deed in lieu on 2 loans |
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That's right Cliff, there are several other options except a deed-in-lieu.
Bazooka, you can negotiate with your lender for loss mitigation options like repayment plan or a special forbearance. If the lender feels that none of the options are suitable for you, then you may ask for a loan modification. Prior to negotiating with the lender, you need to submit a hardship letter stating why you can't pay anymore and which option you would opt for and why. Know more about hardship letter and loss mitigation options that can be suitable alternatives to deed-in-lieu.
Regards,
Jessica.
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http://jessica.mortgagefit.com/ |
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Saundra
Guest
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Post subject: Death of spouse and DIL |
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I have had my house on the market for four months after the death of my spouse in January. It was a two income mortgage so I moved out and put the house on the market hoping for a quick sale-- No offers even after two price reductions. I am not behind on my payments and just recently negotiated a forebearance with the mortgage bank. From all I have read a DIL seems like the best choice for me if the bank will approve it. Any suggestions on how to go forward?
Thanks,
Saundra |
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larry
Joined: 27 Jun 2007
Posts: 3322
474.67 Dollars($)
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Post subject: |
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Hi Saundra.
Welcome to the forum.
You have already with the bank for the forbearance. So the bank may not agree for the deed in lieu now but you should at least inform the bank that you want to get for deed in lieu of foreclosure.
Best of luck,
Larry |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Post subject: RE: deed in lieu after forbearance |
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Hi Saundra,
Is it that you don't want to continue paying the mortgage any more? because if you've been offered a forbearance, that's pretty good considering the credit effects that a deed in lieu may have.
In most cases, if the borrower fails to follow a forbearance plan, the lender may consider approving a deed in lieu. But in your situation, is there any payment problem with the forbearance plan?
Take Care |
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