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Zee
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Post subject: Tenants |
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| I have a home in florida that I will be doing a deed of lieu and I wanted to know how long do I have until I tell my tenants they have to move? My 90 day trial to be posted on the market ends on Feb. 16th, and that is when I will do the deed of lieu - can someone please tell me when I am suppose to inform my tenants to move? Please help... |
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Post subject: |
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| You should inform your tenants immediately about the deed in lieu so that can move out of the property and find another place to live in. |
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jaxx
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Post subject: Proactive |
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Hello,
I'm in a situation where my wife and I can't afford the mortgage payments. We informed the lender that we can't afford the monthly payment ahead of time so we suggested doing a deed-in-lieu. Now in talking to the lender, they told us to do a short sale for 3 months and call them up for a deed-in-lieu. It doesn't make sense that they suggested this even though we informed them that our house is not selling and we have exhausted our funds. What is the lender trying to do??? Was it a good idea to tell them ahead of time about the deed-in-lieu then waiting??? Do I need to have a lawyer involved in this??? Do you have any suggestion about my situation???
Thank you,
jaxx |
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jameshogg
Joined: 20 Dec 2005
Posts: 10148
Location: Nevada
941.94 Dollars($)
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Post subject: |
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Hi jaxx,
I think the lender has just given you an option of short sale. You may list the property at a lower price in the market once again and see if you can sell it or not. If you cannot sell the property, then you may again contact the lender for a deed in lieu. You may take the help of a lawyer and let him review your situation.
Thanks |
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jonathan
Joined: 29 Jan 2009
Posts: 1
1.90 Dollars($)
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Post subject: Lost - Short Sale or Deed-in-Lieu. |
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I’m in a similar Short Sale situation. Based on the advice of some (e.g. a radio talk show host and author of financial topics, and an endorsed local real-estate services provide of said radio host) we elected to seek a short sale of our property starting in August 2008. We made this decision because we were told the bank would be more willing to work with us because we would find and bring a buyer with us. Also, the advice included only doing a short sale if it was done with no recourse. We have been through 3 buyers and all have given up because the bank is taking forever to process our short sale paperwork.
I’ve recently receive conflicting advice from a lawyer who is frequently involved in foreclosures and bankruptcies. The lawyer (who has not reviewed our case in detail) recommends giving the keys to the bank to get this liability off our plate ASAP. He says the deed-in-lieu of foreclosure would be best for us because it removes the liability quicker than a short sale and by law the bank has no other recourse for the outstanding balance. The short sale does not appear to have that same protection by law, and must therefore be negotiated with the bank.
I’m now second thinking our original plan.
We originally purchased land in 2007, built a house in 2008 and moved in. We then got hit by the gas prices, a drop in my income, and a rental property across the country that was vandalized and abandoned by the tenants. We could no longer afford the home.
The appraised value of the home in 2008 was around $410,000.
Loan balance is around $390,000.
Short sale attempts have only produced offers around $275,000 to $289,000
We’ve lost 3 buyers and have been told that the bank is at least 6 weeks behind. I’m not sure what 6 weeks behind means, but it sounds like it will be at least 6 weeks before the bank will finish our short sale package, whether approved or not approved.
We just receive the lawyer’s advice to seek a deed-in-lieu of foreclosure.
We also just received another offer for $289,000.
What is the most ideal situation for my family? What would be the best course of action?
Should I accept the offer? Should I call the bank and ask for a deed-in-lieu of foreclosure?
Should I ask for the deed-in-lieu and tell them I have an offer for $289,000.
Finally, how long does a deed-in-lieu usually take to process?
I’m so lost and I just want to make the best decision and put some finality to this business.
August 2008 was the last time we made a payment. Your help is appreciated. |
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adonis
Joined: 22 Oct 2005
Posts: 10242
Location: ALASKA
1042.50 Dollars($)
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Post subject: |
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Welcome jonathan,
In case of a short sale, you are liable to pay the deficient amount resulting from the sale of the property. But in case of a deed in lieu, the lender forgives the deficient amount. You will be charged taxes on this forgiven amount.
Moreover, you should note that in a short sale, the credit score is lowered by 75-100 points whereas in deed in lieu, credit score is lowered by 250 points. As far as I know, a deed in lieu takes around 90 days to complete.
If you want to save your credit score, you can go for a short sale. Otherwise you may go for a deed in lieu.
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Procrastination is the enemy of your financial success |
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Lori
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Post subject: Short Sale vs. Foreclosure vs. Deed-in-Lieu |
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Situation:
My partner and I are trying to figure out the best way to unload a house that we can't sell and can't pay for. We were facing foreclosure several months ago, but managed to pull ourselves out of it, however, my partner filed bankruptcy in the process (the house is in her name). Now she has lost her job and I mine, we have moved to a different state and have had the house on the market for several months with no results. We will not be able to make the payment next month, but are not behind yet and want to get out from under it ASAP.
Questions:
1. Do my partner's bankruptcy limit or dictate our options?
2. Since we are not currently behind on the payments, do we need to wait until we are to do anything?
3. Considering she now already has a bankruptcy on her credit, does it really matter whether a foreclosure, short sale or deed-in-lieu goes on it now? |
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Tam in So Cal
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Post subject: Imminent Foreclosure |
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Hello,
We are over 3 months late now with our mortgage (due to husband's job loss) and, absent any 'cramdown' bankruptcy changes for mortgages, believe there is no way to save our home.
Like many people in southern CA, we are very upside-down with our mortgage, and have an 80/20 mortgage after a refinance we had to do because our original loan was going to adjust very high.
At this point we feel our only options are either a deed in lieu of foreclosure or a foreclosure. From what I understand, CA has a law, which is set to expire at the end of 2009 (but possibly already extended) which will relieve us of a tax liability if Countrywide lets us do a DIL. Is this true? I know there is a federal law that temporarily allows this as well.
My primary question is this: Since CA is supposedly a nonrecourse state, can Countrywide come after us for a deficiency if we foreclose? Does it matter if our current loan is a refinance as opposed to the original loan?
Thank you
I've done a great deal of online research on this, but the information is conflicting. |
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Zee
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Post subject: Deed Of Lieu |
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| If I do a Deed of Lieu - do they go into your personal bank account and take the money you have there? What about your credit cards? Do they close your credit cards? I have a ING DIrect account as well - do they go in there and take the little bit of money I got? Please help, Im concerned and im in the process of doing a Deed of Lieu... |
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TEXAS LAW
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Post subject: deed in lieu of foreclosure - heirs |
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Can the heirs be held responsible for the their deceased dad's mortgage? Can the mortgage company actually sue his boys (age 24 and 23) for any deficiency? The 24 year old draws SSDI off his dad's death and the 23 year old just completed college and is currently working as a part time muscian. Neither boy has any assets.
_________________
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B&J
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Post subject: 1st & 2nd Loans |
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| If you give a Deed in Lieu to the 1st mortgage lender, how do you get the 2nd mortgage lender to agree to discharge the lien. Would the 2nd lender agree to take back a promissory note for an amount much less than the debt [i.e., $25,000 on a $180,000 balance]? |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.04 Dollars($)
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Post subject: |
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What type of bankruptcy did your partner file? It's good that you are not behind on payments. But until and unless one is behind, lenders usually don't want to work out with borrowers. However, since you're in a different state, the lender may agree to accept a deed in lieu.
Since the house isn't getting old off, it's best to hand over the property to the lender. When you do so, you need to explain that in the forthcoming months it may be difficult for you to pay. Otherwise why would the lender agree to take back the property when you're making the monthly payments as required.
Has your partner included the mortgage in the bankruptcy? A deed in lieu is possible even though bankruptcy may have been filed. But the lender can't foreclose while your partner is in bankruptcy. There's an automatic stay declared on all legal action like foreclosure, wage garnishment etc.
Good luck
_________________
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Post subject: |
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Hi Tam,
CA follows the non-recourse laws for purchase mortgages only. So, if Countrywide forecloses your property, it may come after you for the deficiency. However, if you go for a deed in lieu foreclosure, the lender won't have the right to collect the deficiency.
Take care |
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Ryan12
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Post subject: |
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Hi Zee,
If you go for deed in lieu, nothing of what you have mentioned will happen. His is because the lender's right to collect the deficiency is waived off in deed in lieu. |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1519
Location: florida
281.04 Dollars($)
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Post subject: |
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Hi,
To Texaslaw,
The heirs are not legally responsible but if the lender wants to foreclose the home when payment aren't made, then need to pay off the loan in order to keep their home.
To B&J,
The second lender may agree to forgive a part of the debt. He may even charge off the second mortgage. He will not discharge the lien just because the first foreclosed. The second lender may sell off the loan to collection agency who'll then collect the debt from you. Check out the discussion on 2nd mortgage deed in lieu to get a fair idea of what happens to second mortgage after deed in lieu on the first.
Good luck
_________________
Mortgage Shopping made easy with booklet |
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