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sara
Moderator
Joined: 05 Jul 2006
Posts: 2650
Location: New Brunswick, New Jersey
489.32 Dollars($)
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Hi Guest,
It would be a good option to apply for a deed in lieu with your lender if you are unable to pay off the loan. If your request is accepted, then you won't be liable for the deficient balance resulting from the sale of the property.
Hi billy,
It is not late to apply for a deed in lieu. If you are unable to pay the loan, you can definitely apply for it. Depending upon your present financial situation, the lender will let you know whether or not he would accept your request.
Take care.
_________________
Find me at FB: http://www.facebook.com/people/Sara-Jones/100002976822020 |
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Vicky
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Post subject: Consequences of Deed in Lieu with Private Mortgage |
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I own a property but it has a private mortgage. If a re-mortgage I have to come to closing with $30,000 due to the low appraisal value it was placed on the property due to market conditions here in South Fl.
If I give the property back with a Deed in Lieu to a private mortgage held by a couple, what are my tax consequences and how does this affect my credit? My mortgage balloned this month and I don't see light at the end of the tunnel. Please help. |
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smithsussane
Joined: 18 Sep 2008
Posts: 10045
Location: Alaska
921.83 Dollars($)
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Hi Vicky!
Welcome to forums!
If your lender accepts the deed in lieu of foreclosure, then they have the rights to report it to the credit bureau. This will affect your credit score badly and it will be lowered by 250 points. This will remain as a negative mark on your credit report for the next 7 years. However, the lender won't be able to come after you for the deficient balance.
Feel free to ask if you've further queries.
Sussane |
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Billy G
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| I did a deed in lieu in December and I have been out of my property since Jan 1, and the mortgage co told me I was free and clear and would not owe them any money- now a second party collection agency just sent me a letter saying I owe the mortgage co $26,000 and should send them payment immediately- please tell me this is a scam and I am not liable for any back payment. I just want the nightmare to finally end- thank you for all of your help! |
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comso
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Post subject: deed in lieu |
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| if I reside in MICH and purchased a home in FLA....things did not work out and I cannot make payments....I have to move back to MICh....I want to do a deed in lieu....but if I have to pay the difference from what is owed and what it sells for, why would I not just walk away ? |
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adonis
Joined: 22 Oct 2005
Posts: 10267
Location: ALASKA
1046.07 Dollars($)
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Hi Billy,
After a deed in lieu, the lender will not be able to come after you for the deficient balance. The lender forgives the deficient balance. I think that the collection agency can be a scam. You can ask the collection agency to validate your debts. You may even contact an attorney who may help you in dealing with them.
Hi comso,
If you go for a deed in lieu, you won't be liable for the balance amount resulting from the sale. However, if you walkaway from the property, then the lender would foreclose your home and you'll have to pay the balance amount to the lender.
_________________
Procrastination is the enemy of your financial success |
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cosmo
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Post subject: deed in lieu |
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| I pay PMI in Florida and the bank might not agree to a deed in lieu, then I would suffer the amount after forclosure. What means do I have to make the bank accept the DIL ? Or how do they chase me in Michigan ? |
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help
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we have tried for a loan modification but they are stroking us in every direction for many months so we will probably have to foreclose because i only have a part time job-the house is under water-my husband is handicapped and my unemployment benefits will be ending in june....ant idea how long one is able to stay in the house once payments are stopped? and what can i expect to happen after stopping mortgage and tax payments
thank you-- signed, very scared |
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smithsussane
Joined: 18 Sep 2008
Posts: 10045
Location: Alaska
921.83 Dollars($)
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Hi!
Welcome to forums!
To Cosmo,
Depending upon your financial situation, the lender would let you know whether or not he would accept your deed in lieu of foreclosure. If you can convince your lender about your financial hardship, then he would accept it. Once the lender accepts your request, he would forgive the deficient balance resulting from the sale. Thus, the lender won't chase you in Michigan for the balance debt.
To Guest,
The lender will start foreclosure procedure if you do not make payments for 3 months in a row. After the foreclosure sale is over, you would get a 3 days notice to leave the property. You will have to move out of the property within that time period.
Feel free to ask if you've further queries.
Sussane |
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sewgr8ful
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Post subject: 2nd mortgage |
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| What happens to the 2nd mortgage if I do the deed-in-lieu transfer? Do I have to take out a personal loan to pay off the 2nd mortgage? |
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Niicss
Joined: 03 Oct 2005
Posts: 4772
Location: New Jersey
499.62 Dollars($)
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Though you apply for a deed in lieu with your first lender, you would still be responsible for the second loan. You will have to pay it off. You can take out a personal loan in order to do so.
_________________
Good is the Enemy of Great. |
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xbrooklyngrl
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Post subject: Deed in lieu and 2nd mortgages |
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| how does a deed in lieu effect a 2nd mortgage? |
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jameshogg
Joined: 20 Dec 2005
Posts: 10164
Location: Nevada
944.24 Dollars($)
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Hi xbrooklyngrl,
If there is a second mortgage, then you will have to pay off the second mortgage dues to the lender though the first lender pursues a deed in lieu of foreclosure. The second mortgage lender will not forgive his dues.
Thanks |
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shona
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Post subject: How much time |
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| How much time will i have to find another house to lease? |
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Niicss
Joined: 03 Oct 2005
Posts: 4772
Location: New Jersey
499.62 Dollars($)
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After a deed in lieu of foreclosure, you may get a notice from your lender to leave the property within 3 days. You will have to move out of the property within that period of time. Thus, it's better to find a house as soon as you apply for a deed in lieu.
_________________
Good is the Enemy of Great. |
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