Deed in Lieu of Foreclosure

rmtiglao · Joined: 21 Jan 2008 Posts: 1 1.47 Dollars($)

Hi, I live in Florida. I bought a house two years ago with a 80/20 mortgage loan. I have been behind on my mortgage payments for almost 3 months now. I still have not received any foreclosure notice because I am not over the 90-day period yet. In addition to these two mortgages, I have a third mortgage. I have also not paid my property taxes for the past two years.

My question is this?
Since I cannot afford the mortgage payment anymore because of financial difficulties due to medical illness, etc., is the deed in lieu of foreclosure a good option for me? If not, what woul be my best option? My wife and I are willing to give up our house if it will mean getting rid of the headaches and stress. I would appreciate your advise on this.

God Bless,
RMT

larry · Joined: 27 Jun 2007 Posts: 3328 474.61 Dollars($)

Hi Rmtiglao,

Welcome to the forum.

Sorry to hear your situation.

I think your best option is to go for short sale if you don't want to keep the house. First of all you need to take with your lender ASAP and explain him you situation. If you don't consult with him, he may foreclose at any time and then you can't do anything. Short sale effects you much lesser than foreclosure.

Feel free to ask if you have anything to ask or share.

Best of luck,
Larry

michelle · Posted: Mon Jan 21, 2008 5:52 pm Post subject:

Welcome to the forum, rmtiglao

As Larry indicated, the best thing you can do is contact your current lender right away. They will need to approve whatever route you decide to take. Many lenders require that you try to short-sale the house before they will approve a deed-in-lieu.

Foreclosure will have a much more damaging effect on your credit than either of the above options.

Please let us know if we can answer an further questions.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.11 Dollars($)

If the income problems are temporary then ask the lender for a forebearance. This is when the lender will temporarily reduce your payments for you. If you think it will be permanent and can't afford the home you may want to look at the deed in lieu or sell the home on a short sale.

Guest

My husband passed away 18 months ago and I had to move to make a living for my two children. I cannot aford to keep the house I am 30 days behind on the July Payment. I have had hte house for sale since last Septemeber but no lookers. Where do I start?

Niicss · Posted: Wed Aug 06, 2008 5:01 am Post subject:

Welcome Rae Ann.

Have informed the mortgage company on this matter? If you cannot sell the property then you can request the lender to accept the deed in lieu of foreclosure. By the way if you want to have the property and you think the payment is higher then you can file chapter13. When you file bankruptcy chapter13, you will be offered an affordable repayment plan so that you can get back on track. BTW you will have get approved for filing Chapter 13 Bankruptcy.

Let me know if you have any further queries.

cliff · Posted: Wed Aug 06, 2008 7:23 am Post subject:

Welcome Rae Ann.

Sorry to hear about your husbands passing. If you have had the house for sale since last September with no lookers it is priced to high or you are in a very bad market. You need to contact the lender inform them that you have been unable to sell the house since last September.

If you are in a bad market they will more than likely not accept a deed in lieu. This is because they know if you cannot sell they will not be able to sell it either. However, that is ok because a short sale is a better option because it will not affect your credit as badly as a deed in lieu.

Bankruptcy is another option; however, you will still be required to make a monthly mortgage payment if you feel you cannot afford another mortgage payment then you should not file bankruptcy. If you feel that you can afford a smaller mortgage payment then bankruptcy could be a possibility. However, be careful because you will have to make an monthly trustee payment in addition to your mortgage payment and the trustee payment is typically $700 per month. If you miss a mortgage and/or trustee payment the mortgage company has the right to immediately foreclose on your home.

Hope this helps. Very Happy

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