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adonis
Joined: 22 Oct 2005
Posts: 4719
Location: ALASKA
255.10 Dollars($)
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Hi Rich,
If there are 2 separate properties, then you can complete the deed in lieu for one property and then let another property be repossessed. I don't think there would be any problem.
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Procrastination is the enemy of your financial success |
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guss
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Post subject: deed in lieu |
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| i have a 1st and also a HELOC...we have to give our home back..can i do a deed in lieu? |
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adonis
Joined: 22 Oct 2005
Posts: 4719
Location: ALASKA
255.10 Dollars($)
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Welcome guss,
You can apply for a deed in lieu with your first lender and try to sell off the property. However, you'll still be liable for the HELOC. You'll have to pay off the dues to the lender otherwise the lender will charge off the loan to a collection agency.
_________________
Procrastination is the enemy of your financial success |
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Hutt
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| I'm in the process of a divorce and my spouse does not want to keep the house, nor do I. I will be very stretched making the payments without my spouse's income and will likely not be able to make on-time payments. I have decent credit, and the home payments are current, however the market value is significantly below what is owed on the house due to the 5/1 ARM that was used to finance it and the current market so selling it is not an option. I would like to buy again in a couple of years once I am in a better position.. is a deed in lieu a valid strategy for me? |
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anonymous in ny
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Post subject: deed in lieu for PA tax ramifications |
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| We have a house in PA that we lived in (only residence at the time) for about 3 years, but my husband's job relocated us to NY (Aug 2008) where we bought another house. We have had the PA house on the market for over a year (since April 2008) and we have not be able to make the payments. We are asking the mortgage company for a deed in lieu due to the situation. My question is would the PA house qualify under the Mortgage Debt Forgiveness Act or not? The mortgage company said we would receive an 1099 for the difference of the appraisal and loan payoff. Any help would be greatly appreciated. |
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adonis
Joined: 22 Oct 2005
Posts: 4719
Location: ALASKA
255.10 Dollars($)
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Hi!
Welcome Hutt!
Deed in lieu can be considered as a good strategy but you should note it would be ruin your credit badly. A deed in lieu will lower your credit score by 250 points. If you are confident that you would be able to improve your score before purchasing a new property, then you can go for it.
To anonymous,
I don't think that your house in PA will qualify for the Mortgage Debt Forgiveness Act as it is not your primary residence right now. Though the lender would forgive the deficient amount, you would be liable for pay the taxes on that forgiven amount.
_________________
Procrastination is the enemy of your financial success |
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moffit
Joined: 08 May 2009
Posts: 2
1.59 Dollars($)
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Post subject: Deed in lieu of foreclosure |
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| My husband and I have found ourselves in the economic position. We have contacted a Arizona attorney and he said we need to do a deed in lieu of foreclosure with our bank in Arizona. We own a house in Michigan and some hunting land in upstate Michigan. We have some assets, but not many. What assets, if any, can the bank take away from us besides our Arizona home. |
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jameshogg
Joined: 20 Dec 2005
Posts: 5167
Location: nevada
645.98 Dollars($)
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Hi moffit,
If you go for a deed in lieu of foreclosure, the lender won't take any other asset of yours. However, you should note that a deed in lieu foreclosure would lower your credit score by 250 points.
Thanks |
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Junior
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Post subject: What should I do? |
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| Hi, I bought a townhome for $110,000 in 2005, my first home, with an adjustable rate rate of 6.25%..this rate will change in 2010, now i know i won't be able to afford whatever the new rate will be. I haven't tried loan modification as yet because I am wanting to leave my community due to the voilence and neighborhood changing but also to take advantage of the low house prices. I haven't been able to get a buyer not even for $109,900 and my neighbor i see is doing a short sale for $65,000 and no takers. My credit is below 700 but above 670. By the way, the community looks very nice so i know its not aesthetic reasons why no one's buying. Should I do dee-in lieu? and how much do you think my credit will be impacted? what should I do? |
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Upside down in Florida
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Post subject: Upside down |
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| My husband and I have never missed a payment, we have owned and lived in our home for over 2 years. Now we find ourselves upside down by more the double. We paid $260 and it is now worth 145, we are thinking of just walking away. Our credit score is currently close to 800., but we hate to to continue to pay for a hole in the ground (so to speak) What about a Deed in Lieu of Foreclosure? |
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adonis
Joined: 22 Oct 2005
Posts: 4719
Location: ALASKA
255.10 Dollars($)
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Welcome,
To Junior,
You can apply for a deed in lieu. But lenders accept a deed in lieu, only if you are delinquent on your mortgage payments. A deed in lieu will lower your credit score by around 250 points.
To Guest,
Your lender would accept your deed in lieu request if you are delinquent on your mortgage payments. In case, your lender accepts your request, your credit score will be ruined by 250 points. Moreover it would remain on your credit report for 7 years. You can apply for a short sale if you can pay off the deficient amount resulting from the sale of the property. It will reduce your credit score by 75-100 points.
_________________
Procrastination is the enemy of your financial success |
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maria
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Post subject: return keys |
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| I am moving to my country of origin as I cannot keep up with the payments on my condo. I just want to return the keys. How do I do that? |
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anonymous T
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I have not been late on any payments (mortgage or otherwise), and I have not yet lost my job (cross my fingers). Due to the terrible rental market on a condo I own with my parents I am in the red every month despite massively cutting back on our budget.
We have tried refinancing our home to a lower rate but the foreclosures in our area have drastically reduced our value. We have tried to negotiate with our credit card companies but to no avail.
If we were to proceed with a deed in lieu what are the chances that we could immediately get into a lower priced home that fell within our newly established DTI ratio? How drastically does your credit get hit? Is there a time period in which lenders will not give you a new loan due to the deed in lieu?
We are trying to do the right thing but it is getting out of control... |
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smithsussane
Joined: 18 Sep 2008
Posts: 4515
Location: Alaska
440.39 Dollars($)
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Hi!
Welcome to forums!
To Maria,
You can contact the lender and apply for a deed in lieu. If the lender accepts your deed in lieu request, then you will have to transfer the property to the lender. However, you should note that a deed in lieu will ruin your credit score (in US) by 250 points.
To anonymous T,
If you go for a deed in lieu foreclosure, you will not be able to purchase a property immediately. You will have to wait for 3-4 years in order to get a home loan with better rates and terms. A deed in lieu foreclosure will reduce your credit score by 250 points.
Feel free to ask if you have further queries.
Sussane |
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anonymous in AZ
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Post subject: NOTICE SERVED HOME FORECLOSURED |
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| After trying for the longest (6months) to negotiate a loan mod. (submitted hardship letter and budget list) with lender, I was rejected. I was/am 6 months delinquent due to a financial crisis. Now, I received via cert. mail a notice to vacate IMMEDIATELY ! At this particular time, a family member (one of two major contributors for mortgage payment of house) was hospitalized for 10days and is at home recuperating with no date of return to work. Is it possible for us to have an extension to stay in house until family member recuperates and then vacate ? According to the letter received, our failure to do so will result in the immediate filing of an action in forcibly entry and detainer. Who should I contact ? Please help me ! Thank You. |
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