Posted: Mon Jun 08, 2009 12:35 pm Post subject: Deed In L
I have a rental property and the balance is greater than the value. It has never been late 9 years. The property will soon become vacant and I am at my wits end. I am concerned about my credit. I want to do a DIL. I am very stressesd and upset about this situation. I fell like my entore life and thusly my credit will be destroyed. Will my creditors hut down my revolving credit? How much will my score drop. What reasons do they accept to get the DIL approved. I cant pay it any longer
In case of a deed in lieu, the lender forgives the deficient amount resulting from the sale of the property. Your lender has also forgiven the deficient amount. This forgiven deficient amount will be considered as your income by the IRS and thus, you can receive a 1099-c form. However, depending upon your state laws, taxes on the forgiven amount can also be relieved. I would suggest you to contact a tax adviser and take his opinion in this regard.
To Shelly,
Deed in lieu will help you selling off the property. It will lower your credit score by 250 points and will stay in your credit report for the next 7 years. However, after the completion of deed in lieu foreclosure, you may take steps to improve your credit which will help you in getting back on track. To know some of the simple steps to improve your credit score, check out the following page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
As far as your revolving credit is concerned (i.e credit cards), it depends upon your credit card issuer whether or not they would change your terms.
Thanks
Lori Guest
Posted: Tue Jun 16, 2009 6:12 pm Post subject: Deed in Lieu
Our house has been on the market for 6 weeks. We rec'd an offer today that if we accept we will have to go to the closing table with $28,000. We can come up with some of it, but not all. We are concerned that we will not be able to get a loan for the difference. We are 3 months late in our payments. Should we consider a deed-in-lieu?
You can consider the option of deed in lieu. This will help you in selling off the property and you won't be liable for the deficient amount resulting from the sale of the property. _________________ Procrastination is the enemy of your financial sucess
5zero Guest
Posted: Thu Jul 16, 2009 6:25 pm Post subject: DIL?
I'm transferring within the next 7 months and it is literally impossible to sale my house for what I owe to the bank. If i sell for less I have to come out of pocket anywhere between 10-15k, which I don't have. Renting will not cover the mortgage. I have no problem paying the mortgage but once I move I need the income to support my family at my new location. Should I consider the DIL since I will be sitting overseas for the next three years and during that time my credit will recover?
lorie lynn Guest
Posted: Sun Sep 06, 2009 3:23 pm Post subject: DIL and bankruptcy...what would you recomend...
We are in a pickle...and are trying to figure out what is our best way to go. My husband and I are 48 years old have 45K in Credit Card debt and owe 45K on our first mortgage (FHA) and 60K (interest only home equity line) on the second. Our home is worth what we owe. In this market it might be worth a little less that what we owe. We have 4 children and we are living VERY conseratively to make ends meet. We have had to keep borrowing on our second mortgage. My husband is in denial because we still have perfect credit and will once the home equity line is gone start in on the 401K money. I think we need to file bankruptcy and loss the house (we still could buy another house and then loss the present house we are in.) What is your recomendations?
Deed in lieu can be a good option for you as you won't be liable for the deficient amount resulting from the sale of the property. However, you should note that your credit score will get lowered by 250 points.
To lorie,
You should not file bankruptcy just because of your mortgage debts. If you want to get rid of your property, then you should try for a deed in lieu of foreclosure with your lender.
jameshogg
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