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btvs
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Post subject: Deed in Lieu of Foreclosure |
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| I have a 90% mortgage on my property and a 10% home equity line of credit, neither of which I have paid down on very much, it appears I may be moving to a new city soon and may have to do a deed in lieu of foreclosure. Will the bank do away with the home equity line of credit also or just the 1st mortgage? |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 1773
Location: MICHIGAN
264.99 Dollars($)
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Post subject: |
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Hi btvs,
If you go for a deed in lieu of foreclosure, the bank will do away with the first mortgage only. The first mortgage holder will sell the house and try and recover the loan amount. If the sale proceeds exceeds the first loan amount (which is rare), the second lender will get the exess amount to recover the second loan amount. But if the sale proceeds are not enough to pay off the second mortgage, the second lender can get a deficiency judgment against you and garnish your wages.
Thanks,
Jerry |
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srub
Guest
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Post subject: deed in lieu and second mortgage |
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| What if you want to proceed with deed in lieu after a divorce and you have a second mortgage on property.Does this have an effect on her credit if she is cosigned on note? |
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scrub
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Post subject: garnish wages |
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| If you have a $25,000 judgement from a default second mortgage, how much can they garnish? |
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Alessandro
Guest
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Post subject: |
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Hi scrub,
If you and your spouse had signed on the mortgage note and if you default, her credit score will also get affected, besides yours. As far as I know the federal govt. allows only 1/4 i.e. 25% of your wages to be garnished. So , the rest 75% is likely to be protected from garnishment. |
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Pradise to Mountains
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Post subject: DIL Affect on Credit Rating |
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| Mortgage now $100,000 above fair market value of condo. When mortgage was initiated, loan amount was less than 80% of appraised value in 2007. Medical conditions require early retirement and I cannot afford to keep condo. Have not been able to sell. How badly will a DIL affect my now excellent credit rating? |
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Bravo
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Post subject: |
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Hi Pradise,
A deed in lieu will reduce your credit score by almost 250 points. I think you should first try and short sale the property as this would drop your credit by 75-100 points, much less damaging in comparison. |
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sharon
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Post subject: Deed In lieu |
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| My husband has been transferred and we brought a home in his new location. My question is, our present home has been devalued almost 50% due to living in Queen Creek, AZ, should we get a deed in lieu? We really cannot affored both homes and we have made all our payments. |
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jerry
Moderator
Joined: 17 Oct 2005
Posts: 1773
Location: MICHIGAN
264.99 Dollars($)
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Post subject: |
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Hi sharon,
Falling real estate price is a common phenomenon in the recent times. Many are, thus, opting for a deed in lieu instead of a foreclosure. I think the lender will understand the situation and accept a deed in lieu. However, you need to talk with them in this regard and work out a solution.
Thanks,
Jerry |
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Heather0207
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Post subject: Medical needs |
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I need a lung transplant and the city I live in does not have a facility that does one. My husband and I are moving to were one is available. We are not in default on our mortgage. We purchased our home in 2/07. We have tried to sell the home for what we owe on mortgage (we knew real estate fee would be out of pocket) but in three months less than 10 people have even looked at the home. Absolutely no offeres of any sort. Before listing for sale we tried to even rent home for two months, no offers close to our mortgage payments.
We make enough to sqeak out both rent in new city, bills, and mortgage if nothing unexpected happens. We could care less about our good credit at this point. I want to do deed in lieu of but my husband thinks the less the lender knows about us the more likely we will fall through the cracks or fall in with some group that they don't pursue. He says there is no benefit to the mortgage company to agree to do deed in lieu of so we are best to roll the dice.
We have no equity and used a VA so 100% financed. We did do improvements so that should negate most of the drop in market value here in Atlanta.
My question is this... would there be any reason for the lender to agree to do deed in lieu of with this bleeding housing market for someone not in financial trouble?
How do I do voluntary forclosure? Specifically, do I send my keys to where I send my payments with a certified letter stating we are voluntarilly giving the house back? I am pretty sure no matter what we will have to pay things back but I'm trying to mitigate fees added to the loss in mortgage value and such by not making the bank search for us or wait for three month of late payments.
Because this is a VA loan what does voluntary forclosure on it do for the VA part?
Last question, will the bank notify us one the house is sold for how much it sold for?
Thank you,
Heather |
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savior70
Joined: 25 Mar 2009
Posts: 1416
Location: Florida
167.66 Dollars($)
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Post subject: |
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Hi
It is true that the lender doesn't agree to approve a deed in lieu if you're current on your mortgage. But they can if you can convince them how difficult the situation you're in is. Thus, I think you should send them a hardship letter which stating the situation you're in and how a deed in lieu would help you. |
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bim7patel@yahoo.com
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Post subject: what is best for me l |
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| i used to have my primary house then i purchase the condo , so it becme investment property, then i sold my condo , and then i moved out of state for the business, i don't have any financial hardship, but what is the best way to get rid of property, i tried to sell at 2,20,000 and keep reducing the price to 1,85,000 . i moved out of state , can't stay in that house so it is still listed as investment property, payine $ 2100/ month for nothing, and can't sell in this market |
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smithsussane
Joined: 18 Sep 2008
Posts: 3709
Location: Alaska
556.69 Dollars($)
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FevaDiva
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Post subject: what to do? |
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| We want to move to a bigger property to accommodate a growing family but we're stuck with our 2 bedroom condo. My husband and I have very good credit score and have not been late with payments. Our 5-year loan will end in 2011 and the market value is currently less than my mortgage loan. If we try to short sale or lieu in deed should we rent a property first before they run a credit check prior to the transaction? How much will tax hit us on this? What fees are associated with a short sale or lieu of deed? Is bankruptcy better than foreclosure? What is the best options for us in this situation? |
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coastal
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Post subject: House |
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| My husband and I have had nothing but medical issues since we moved into our home 3 years ago. We pay over 50% if our monthy income for our mortgage. We need to move back home so our family can hellp us deal with medical issues. Our home has been on the market since sept.08. no offers. we need to fine a solution and get out from under this home. but at 64 years old we would like to buy another home near our family. How long will it take to get a loan? |
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