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smithsussane
Joined: 18 Sep 2008
Posts: 4546
Location: Alaska
445.32 Dollars($)
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Hi!
Welcome to forums!
To FevaDiva,
In order to apply for a short sale or a deed in lieu, there is no need to rent out the property. You can simply contact your lender and apply for it. However, it would be the discretion of the lender whether he would accept your request or not. You can check your credit before applying for the short sale or deed in lieu.
As far as taxes are concerned, you can be charged taxes on the forgiven amount in case of a deed in lieu. However, depending upon your state rules, these taxes can also be removed. I would suggest you to go for either short sale or deed in lieu foreclosure as they will not effect your credit as badly as foreclosure or bankruptcy .
To coastal,
As you are 64 years old, you will be able to apply for reverse mortgage. Reverse mortgages are available these days to buy principle residence as well. However, it would be better if you could sell off your existing property before applying for reverse mortgage. You can apply for a short sale and check out if your lender accepts your request or not.
Feel free to ask if you have further queries.
Sussane |
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anntharp
Joined: 22 Apr 2009
Posts: 2
1.31 Dollars($)
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Post subject: Deed in Leiu of Foreclosure |
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| Can a lender force you file chapter 13 or 7 if you agreed to do a Deed in Leiu of Foreclosure. They acted like over the phone that was ok but the form that came in the mail acted like the only way not to pay for the property was to file chapter 13 or 7 against the property |
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smithsussane
Joined: 18 Sep 2008
Posts: 4546
Location: Alaska
445.32 Dollars($)
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Hi Anntharp!
Welcome to forums!
Your lender cannot force you to file bankruptcy. They definitely have the right to refuse a deed in lieu request but filing bankruptcy will be your choice.
Feel free to ask if you have further queries.
Sussane |
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donna
Joined: 11 May 2009
Posts: 1
1.36 Dollars($)
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Post subject: Deed in Lieu |
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What happens when the home is worth more money than what is owed the mortgage? Homes in our area, comparable to ours, are selling for 200k-225k, we only owe 108k. Due to medical bills and job loss, we cannot afford the mortgage and will probably go through bankruptcy anyways. The bank wants to do a Deed in Lieu and is only giving us a couple of days to sign it. Any suggestions?
Thanks |
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jameshogg
Joined: 20 Dec 2005
Posts: 5203
Location: nevada
651.69 Dollars($)
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Hi donna,
If your property is worth more than what you owe then you would have a profit when you sell off the property. In my opinion, it is a better option to go for a deed in lieu than filing a bankruptcy. A deed in lieu will not effect your credit as badly as a bankruptcy.
Thanks |
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Valerie
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Post subject: Short Sale |
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Hi,
I am in the process of selling my home through a short sale. My husband passed away 4 months ago and there is no way I can keep the home financially or otherwise. How long might it be before I can get another mortgage loan? Right now my credit is very good with virtually no other debt. Thank you. |
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jameshogg
Joined: 20 Dec 2005
Posts: 5203
Location: nevada
651.69 Dollars($)
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Hi Valerie,
Though your credit is good, once the short sale is over, you credit score may drop by 75-100 points. You'll have to wait for at least 2 years to get a mortgage in your name after the short sale.
Thanks |
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aarrgghh
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Post subject: deed in lieu |
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| I was told that if we do a deed in lieu, we would still be responsible for the balance difference from the mortgage company if they sell for less than what we owe, is that correct? |
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Kinkzev
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aarrgghh -
That is correct.
If the lender eventually sells the home for a price that doesn't pay off the original mortgage amount, they can get a dificiency judgment and try to collect it from you.
However, the lender knows that you can't get bloodout of a stone and probably won't proceed if there doesn't appear the be any money to recover. |
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stucknrut
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Post subject: Deed in Lieu |
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| I recently just had to do the Deed in Lieu on my home. I didn't want to go this route, but I couldn't afford it and the house didn't sell. It's located in a Dominion Home Subdivision where there were so many foreclosures taking place. People were getting loans for homes they could no longer afford once the property tax was assessed after the first year. (I was one of those people) I am currently renting now and don't like it one bit! Is there any way possible that I will be able to buy another home within a year or two? (without having to pay extremely high percentage rates?) |
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jameshogg
Joined: 20 Dec 2005
Posts: 5203
Location: nevada
651.69 Dollars($)
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Hi stucknrut,
You won't be able to get a mortgage at a low interest rate just 1-2 years after a deed in lieu. You will have to wait for 3-4 years in order to get a mortgage after deed in lieu. There may be some lenders who can agree to give you a loan but they would charge you an extremely higher interest rate.
Thanks |
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stucknrut
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Post subject: :) |
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| Thanks for the info |
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milehighyooper
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Post subject: Deed in Lieu of |
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| I purchased my home in 2005 for $115,900. In 2007, I refinanced so had my home appraised - $134,000. Now, 2009, my home is worth less than $115,000. I can not refi because I owe $120,000 on the home (I borrowed down payment and closing costs). I can no longer afford the monthly mortgage payment and am currently 1/2 a month behind on my mortgage - soon to be more. What effect would a deed in lieu have on my future? |
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jameshogg
Joined: 20 Dec 2005
Posts: 5203
Location: nevada
651.69 Dollars($)
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Hi Guest,
As your are unable to pay your mortgage dues, deed in lieu of foreclosure would be a good option to avoid foreclosure. It will help you in selling off the property. However, it would reduce your credit score by around 250 points and would remain on your credit report for next 7 years. Also you won't be able to purchase a property before next 3-4 years.
Thanks |
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anonymous troubled soul
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Post subject: Deed in lieu and short sale |
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My son and I bought a 2-family property. At the time, I had had a bankruptcy for the loss of a business so we had to put the property and the mortgage in this name, but I put the down payment and all the subsequent repairs and renovations in the house -around 25,000 so far.
Last year, my son got married and now he does not live in the house any more. Even renting the other unit, I have not been able to keep up with the mortgage payments. In addition, I lost my job in March so we stopped paying the mortgage. I have not been able to find a new job so far.
My son applied for a loan modification right away but the bank -Chase- has not responded. Now we has been served with foreclosure papers.
We are really confused as what we should do, on one side, his credit is getting ruined because I cannot afford the payments, and now he has more financial obligations, so he can't help me either.
On the other side, we thought to try a short sale, and I was thinking to make an offer as a buyer -yes, I have to repurchase my own house. However, some people are telling us that the bank won't allow it because we are related.
If we sell the house to someone else, not only I lose my house but also I lose all the money I invested in it, and in addition, we might have to pay deficiency and taxes.
What would you suggest is our best way to deal with this problem? Can you give me some scenarios, pros and cons?
Also, is New Jersey -where I live- a deficiency state? And if so, how much would they want?
I'm afraid I will get sick with all this! |
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