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amar
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Post subject: Deed in Lieu of Foreclosure professional help |
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| How can I convince the second mortgage to release the loan to Deed in Lieu of Foreclosure? And professional help me do it |
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amar
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Post subject: loan to Deed in Lieu of Foreclosure |
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| but the loan is not that big is only 33K |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 2617
Location: MICHIGAN
415.55 Dollars($)
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Hi amar!
As far as I can understand from your question, the first lender has accepted a deed in lieu foreclosure for the property but the second lender is not agreeing to it.
When the first lender does a deed in lieu foreclosure, he mentions a non merger clause in it which prevents the second mortgage lender to take any legal actions. However, this does not free the first lender from its liability to pay the second lender. It's the first lender's liability to pay off the junior liens unless there is some kind of negotiation with the second lender.
You can also pay off the outstanding amount to the second mortgage lender so that the lender does not charges it off to any collection agency. To know more about the effects of deed in lieu on second mortgage, check out the information available here.
Thanks,
Jerry |
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Jesse
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| I recently bought a home in March in west-central Pennsylvania. The house appraised at $63,000 (I payed less), and I owe $57,000 on it. I'm not behind in my payments, and I make my minimum payment every month. I never intended on staying in the home for more than a few years, but because of today's economy, my fear is that I will have difficulty selling it, and, obviously, I don't want to foreclose. I'm curious if I should try to sell it (I plan on moving in the next 8 - 20 months), or if a deed in lieu or short sale are better options for me. |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 2617
Location: MICHIGAN
415.55 Dollars($)
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Post subject: |
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Hi Jesse,
You should first list the property in the market and check if you are getting buyers for the property or not. If you get good buyers, then you can easily sell off the property. However you should remember that once you sell the property, the loan may become due and the lender will ask you to pay off the mortgage immediately. If you don't get buyers, then you can think of deed-in-lieu or short sale.
Thanks,
Jerry |
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Lynn
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Post subject: deed and leiu |
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Hello,
I have 8 rental properties, and I recently lost my job. The tenants have not paid on most of them in a few months. I can no longer afford to keep these properties or keep the maintenance on this properties. I would like to know how does a deed and leiu work for rental properties and is that a good option or not. I live in Milwaukee, WI and nothing selling these days. |
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JR
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Post subject: Possible Deed in Lieu of Foreclosure |
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Hello,
Hope you are having a great Thanksgiving.
My questions.
#1. Can I just give back the Deed to a Property & also have the previous owner sign a letter forgiving the debt on the mortgage note? The previous owner sold a commercial building to me via Seller Financing. I have made all payments on a commercial building & am not behind on any payments. For 18 months, I have not been able to fill the vacancy either with a Renter or Buyer.
#2. In addition to Court Recording Fees & Paperwork preparation, what other costs will I have to pay if I just return the Deed back to the previous owner?
#3. Is this situation a Deed in Lieu of Foreclosure?
Thanks for your help. |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 2617
Location: MICHIGAN
415.55 Dollars($)
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Post subject: |
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Hi,
To Lynn,
In the process of deed-in-lieu, you will have to give back the property to the lender who will try to sell it in the market. As you have mentioned that the market is not so good in your area, there are chances that property will be sold at a lower price. Thus, there will remain a deficient amount. In the process of deed in lieu, this deficient amount is forgiven. To know more about deed in lieu, check out the following link:
http://www.mortgagefit.com/deed-lieu.html
To JR,
You can deed back the property to the owner but there are chances that the owner will penalize you because you are breaking the contract. Whether the owner will forgive the debts will be totally the owner's discretion. You should check out the agreement and see the terms and conditions of the deal.
As far as I know, other than court recording fees and paperwork, you will also have to pay for the stamp docs. As far as deed in lieu foreclosure is considered, I think it can be done.
Thanks,
Jerry |
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JR
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Post subject: Possible Deed in Lieu of Foreclosure |
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Hello again Mr Jerry & Thanks for your reply.
If the Deed in Lieu of Foreclosure is done, are there any associated costs other than court recording fees & administrative paperwork?
Do I end up with a tax consequence, although I have made all payments?
Thanks again. |
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Ann
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Post subject: Deed in lieu of foreclosure |
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| I am currently going through a divorce. We put our house on the market. We owe more on the home than its fair market value. The house has been on the market for two months and we haven't received any offers on the home. I cannot afford to make any more payments, so the mortgage will not receive the December payment, which will be the first payment I've missed. Since we haven't received any offers, a "short sale" is out of the question, right? Is it correct to pursue a deed in lieu of foreclosure in this situation? Also, would a deed in lieu of foreclosure have any effect on my tax return? What do you think is the best course of action for me to take. I've been calling Countrywide mortgage for the past year and a half for some type of loan modifications but was always told I didn't qualify. I'm just so frustrated because I cannot get any help from them and every time you call you speak to a different representative and they always give different information. |
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adonis
Joined: 22 Oct 2005
Posts: 10242
Location: ALASKA
1042.50 Dollars($)
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Post subject: |
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Welcome,
To JR,
In case of a deed in lieu foreclosure, the deficient amount resulting from the sale of the property will be forgiven by the lender. So you will have to pay taxes on that amount as it will be considered as your income.
To Ann,
I won't say that the lender will not agree on a short sale but yes it will be difficult for you to convince him. But I would suggest you to apply for a short sale and see what the lender has to say. If the lender agrees to it, I think it will be a good option that you can take.
You will have to apply for a deed in lieu foreclosure and it will be the lender's discretion whether he will approve it or not. A deed in lieu will affect your taxes as you will have to pay taxes for the deficient amount which will be forgiven. The forgiven amount will be considered as your income.
As far as loan modification is concerned, lenders do not accept it until you default on your payments.
_________________
Procrastination is the enemy of your financial success |
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Lizzy
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Post subject: Mortgage Debt Forgiveness Tax Relief Act |
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| From your site this tax relief act is not in effect in California. Is it now in effect in California for use with the deed in lieu of foreclosure? |
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Post subject: |
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| I don't think the Mortgage Debt Relief Act is applicable in California. You can contact a mortgage attorney to get the updated information. |
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juan
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Post subject: foreclosure |
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| how long does it take for a foreclosure in florida? |
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jay54
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Post subject: Question |
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I currently own a condo with my now ex girlfriend. We are both on the title, but she is the only one on the mortgage. I have been living there and paying the mortgage, while in the process of refinancing in my name. I have since decided that I no longer wish to keep the condo and gave her the option of buying me out (I put all the money down) or selling it. Today I received a call from the bank stating she called them asking about deed in lieu of foreclosure, even though the loan is not in default at the moment. My question is, since I am on the title, will my signature be required to proceed with a deed in lieu if the loan defaults? Also, what liability (just being on the title and not the mortgage) would I have in the event of a foreclosure?
Thanks |
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