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joella66
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Post subject: Deed vs mortgage |
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Hi Jessica, I'm on the deed but not on the mortgage, but we do split the mortgage payment and report it on each of our income taxes (50-50), we are thinking of foreclosing, since I file taxes, will this affect my credit score.
And is it true, some states like Georgia, do not deed in lieu of foreclosure?
Judicial versus non judicial bank laws or rules? |
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jameshogg
Joined: 20 Dec 2005
Posts: 10164
Location: Nevada
944.24 Dollars($)
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Post subject: |
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Hi Charlie,
Though you have two loans, you can go for a deed in lieu of foreclosure with your first lender. In that case, the first lender will forgive the balance dues resulting from the property sale. However, the second mortgage lender will not forgive the dues. He may come after you for the balance amount resulting from the sale of the property.
Hi Joella,
If you're not on the mortgage, then the foreclosure will not be mentioned in your credit report and it won't lower your credit scores. I haven't heard of any such rule which says that deed in lieu of foreclosure is not available in states like Georgia.
Thanks |
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tsbga@yahoo.com
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Post subject: Want to get a better house |
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Jessica,
I recently had a child and need more space. I currently have a 2 bedroom, 2 and half bath townhome, with a garage. I know that I could qualify for another home if I could get out of my current one. But I know that I could not sell it for what I paid. Can a deed in lieu of foreclosure help me achieve this?
TSB |
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adonis
Joined: 22 Oct 2005
Posts: 10267
Location: ALASKA
1046.07 Dollars($)
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Post subject: |
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Welcome tsbga,
A deed in lieu of foreclosure will help you in getting rid of the property and you won't be liable for paying the deficient balance. It will be forgiven by the lender. But it'll reduce your credit score by 250 points and you won't be able to get a mortgage within the next 3-4 years.
_________________
Procrastination is the enemy of your financial success |
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 808
Location: OHIO
435.83 Dollars($)
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Post subject: |
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Hi tsbga,
A deed in lieu is where you hand over property to the lender who them sells it off to retrieve the money he owes. It depends on the market as to whether the lender will be able to sell your home at the price you're looking for. Moreover, you don't get anything from the sale proceeds. However, unlike a short sale, you don't need to pay any deficiency balance (outstanding mortgage debt - home sale price) after a deed in lieu (DIL). That's because a DIL waives the lender's right to collect the deficiency balance from a borrower.
Since you're looking for another home, I'd suggest that you do it only after you repair your credit score that's likely to go down with a deed in lieu. I understand you need space but there's less chance of getting a mortgage at better rates and terms unless you approach a credit union or your State Housing Authority.
What I shall suggest is that you avoid a deed in lieu and negotiate an alternative repayment plan with the lender. By the way, did you have a talk with the lender? Are you comfortable paying on a mortgage with modified terms and conditions or negotiating an alternative repayment plan?
_________________
http://jessica.mortgagefit.com/ |
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merniebelle
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Post subject: |
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| may i do a deed in lieu on a rental property that i have been trying to sell for 4 years? i presently have it listed for $25,000 below the tax value and i am going to try lease to own. if that doesn't work, i would like to try the deed in lieu. i would lose $50,000 but it may be the best way, as i am having a hard time making payments. |
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smithsussane
Joined: 18 Sep 2008
Posts: 10045
Location: Alaska
921.83 Dollars($)
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Post subject: |
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Hi merniebelle!
Welcome to forums!
You will be able to go for a deed in lieu of foreclosure though it's your rental property. However, in case of a deed in lieu of foreclosure on a rental property, the lender will not forgive the balance dues resulting from the sale.
Feel free to ask if you've further queries.
Sussane |
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chas.
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Post subject: Deed In Lieu |
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| In the proces of a short sale which has not produced any positive results. 1st and 2nd mortgage on the house ($117,000/$72,000). Unable to make payments and home repairs on pension. 1st mortgage holder recently forwarded a Deed In Lieu application. I emailed info to my attorney via his secretary. Her response was that I would sign a Deed In Lieu in the short sale (info per the attorney). This contradicts all I've read in this forum. Am I missing something or is maybe the secretary relaying unreliable info. Also, all communication is through the secretary. Please advise. |
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carmen
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Post subject: I need to return my property back to the bank. |
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I purchase my property in 2006 1.25 acres with a singlewide that need it a lots of work but I had a dream of building my home, my business and retire there, everything look good, I had good savings, retirement funds and a promising business, I had no doubt that I could make it, as soon as I moved in, I start my house plans, I even applied and obtain from the City a construction permit, and start building a pool, everything with my personal savings, then I applied for a construction loan to different banks this include your institution, but every bank turned me down, I pursued this for over two years, in the process I used my savings and retirement funds, since I realize I could no longer make it. I had no choice but to move to a different location, for the next two years I tried my best to sell the property with no luck, and in the process I used the rest of my saving and income to maintain my mortgage payment until I could not do it anymore, and I start defaulting. Then I start a modification process thinking that it would be a temporary solution until I could resolve this matter.
Anyway last December somebody told me a couple need it a place to rent, since I had no choice I agree to do it, at first they were very cooperative, they even mention that they would take care of any fixing and that eventually they would like to purchase the property that their fico score was low but they would be working on that and I believed them, so I went ahead and sign a rental contract, they requested for 24 months, so I thought it would be good, this would give them time to improve their credit and even when the rent amount did not cover the entire mortgage payment it would be a lot less what I had to pay, I cover the property insurance and property taxes at this time are current.
But little as I knew this people start falling in their rent payments and to make matters worse start being aggressive and intimidating, using any little excuse to treat to suit me for not doing certain things to the property, (they way it looks they are con artist), now I’m in a situation when they don’t want to pay the rent anymore, I can’t afford the mortgage anymore and I can’t also afford any legal action against this people, so for this reason and with heavy heart I would like to return the property back , to prevent foreclosure I heard about DEED IN LIEU. But I don’t know the process |
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jameshogg
Joined: 20 Dec 2005
Posts: 10164
Location: Nevada
944.24 Dollars($)
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Post subject: |
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Hi Chas,
You can sign a deed in lieu of foreclosure in order to get rid of the property. However, though your 1st mortgage lender will not come after you for the unpaid balance resulting from the sale, your second mortgage lender will be able to come after you for the balance amount.
To Carmen,
You can go for a deed in lieu of foreclosure in order to get rid of the property. You will have to contact the lender and apply for the same. To know more about deed in lieu of foreclosure, check out the given page:
http://www.mortgagefit.com/deed-lieu.html
Thanks |
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cedric1987
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Post subject: Deed in Lieu |
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| In Army and about to go to korea and will be gone for three years. is this a good ideal for me. The deed in lieu? |
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adonis
Joined: 22 Oct 2005
Posts: 10267
Location: ALASKA
1046.07 Dollars($)
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Post subject: |
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Hi cedric,
If you want to get rid of the property, then you can go for a deed in lieu of foreclosure. You should contact the lender and apply for the same. But unless you're delinquent on your mortgage payments, the lender won't accept your request. However, it will reduce your credit score by 250 points.
_________________
Procrastination is the enemy of your financial success |
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Traci
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Post subject: |
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| If I was renting a property and found out the home had Chinese Drywall, our belongings are still in the home and the owners refuse to give us our money back. They informed us that they have started the deed in lieu of foreclosure process, how long does it usually take before the bank locks the house and we are no longer able to move them. |
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jj
Guest
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Post subject: deed in lieu |
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| how long do you have before you have to get out of the property? |
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smithsussane
Joined: 18 Sep 2008
Posts: 10045
Location: Alaska
921.83 Dollars($)
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Post subject: |
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Hi jj!
Welcome to forums!
After a foreclosure sale, the lender will give you 3 days time to move out of the property. He will send you an eviction notice regarding the same. You'll have to move out of the property within that given time period.
Feel free to ask if you've further queries.
Sussane |
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