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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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Hi EE,
You can apply for a deed in lieu of foreclosure with your lender. The lender would look into your situation and decide whether or not he would approve it. A deed in lieu would lower your credit score by 250 points. You won't be able to purchase a property immediately. You will have to wait for 3-4 years in order to get a home loan.
_________________
Procrastination is the enemy of your financial sucess |
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owningsucks
Guest
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Post subject: loans |
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| my house depriciated 62000 I am at odds of wether to refinance my house to lower my payments or let them foreclose I can't afford the payment as of now |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Hi Guest,
As the property value has depreciated, it won't be possible for you to refinance the loan. You can apply for a deed in lieu of foreclosure.This will be a better option than a foreclosure because you won't be liable for the deficient amount resulting from the property sale. However, the credit effects for both foreclosure and deed in lieu would be the same - your credit score would be lowered by 250 points.
_________________
Procrastination is the enemy of your financial sucess |
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Derith
Guest
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Post subject: Deed in Lieu-90/10 |
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| Is that is viable option when your are dealing with 2 mortgage companies? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 1679
Location: New Brunswick, New Jersey
315.05 Dollars($)
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Hi Derith,
Deed in lieu of foreclosure can be an option when you have two loans. However, both the lenders will have to agree for the deed in lieu. Moreover, if the first lender goes for the deed in lieu, you would still be liable to pay off the mortgage dues of the second lender.
Take care. |
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Mikeyjb
Guest
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Post subject: Deed in lieu |
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| we have a fha insured loan, due to both of us now unemployed we have discussed loan mods. with lender, they are saying they are not approved for the fha making home affordable program and suggested deed in lieu instead. we don't care about giving up home just wondering about credit issues and can they require us to pay the loss on sale of the home? |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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Hi Mikeyjb,
A deed in lieu of foreclosure would reduce your credit score by 250 points and will remain on your credit report for 7 years. Apart from this, you won't be able to apply for a mortgage within the next 3-4 years. However, you won't be responsible for paying off the deficient amount resulting from the sale of your property.
Thanks |
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Georgette
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Post subject: foreclosure or DIL?? |
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Hi,
We bought our home 5 years ago. My husband is being laid off in December. We pay well over 50% for our mortgage & taxes. We cannot refinance & to have a short sale would be impossible considering our home needs work. We are about to have our 5th child in March. We really cannot afford to pay our mortgage & taxes. We have not missed a payment yet but that is b/c my husband is still receiving income. I stay home with the children. My question is will a DIL or foreclosure be better for us? We have 2 mortgages. We live in NY. Will we be responsible for back taxes as well? What do we need to do?? Please advise.
Thank you very much. |
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adonis
Joined: 22 Oct 2005
Posts: 3852
Location: ALASKA
120.89 Dollars($)
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Post subject: |
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Hi Georgette,
A deed in lieu of foreclosure can be a good option in your case. You will be able to get rid of the property and won't be liable for the deficient amount, in case of first mortgage, resulting from the sale of the property. As far as second mortgage is concerned, you'll have to clear off the dues or else, the lender may send it to collections. You should note that a deed in lieu will lower your credit score by 250 points.
In case of a foreclosure, the credit effects would be same. However, you would be responsible for paying the deficient amount for the first as well as the second mortgage.
In any case, you will have to pay off the back taxes.
_________________
Procrastination is the enemy of your financial sucess |
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Jim Kunz
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Post subject: Deedin lieu |
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I am th lender on vacant land...the borrower is ten months behind...
the property might not be worth what is owed ...
Should I try to do DIL.........
[E-mail address deleted as per forum rules. Thanks.] |
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smithsussane
Joined: 18 Sep 2008
Posts: 3709
Location: Alaska
556.69 Dollars($)
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Hi Jim!
Welcome to forums!
As you're the lender, it is totally your discretion whether you want to go for a deed in lieu or foreclose the property. If you agree to a deed in lieu of foreclosure, you will only be able to recover the property. You won't be able to sue the borrower for the deficient amount resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane |
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Help
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Post subject: Will a deed in lieu hep me? |
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| My house was in foreclosure last September 2008. I did everything that was required to stop the foreclosure. I paid the proper amount that the mortgage company told me to. They kept putting a forbearance agreement every four months. While I was compyling with the agrrement the company stated that the house is still in forclosure and they blocked my payment for November 2009. Remember, I have paid everything that I was told to pay and I paid it on time, until the payment was blocked for November 2009. I am with a debt consolitation company with my other debts because I want to restore and repair my credit. However, this mortgage company is really giving me the run around and I am really disgusted of it. Will a deed in lieu help me? How will it affect my credit? |
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jameshogg
Joined: 20 Dec 2005
Posts: 4291
Location: nevada
509.34 Dollars($)
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Post subject: |
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Hi Guest,
A deed in lieu of foreclosure would help you sell off the property. However, it will affect your credit score badly. It will lower your credit score by 250 points. Also, it would remain on your credit report for the next 7 years. However, you'll not be responsible for the deficient amount resulting from the sale of the property.
Thanks |
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