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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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David urzua
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Post subject: short sale |
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| Hi i have two house's one in KY and the other in AZ, my situation is my brother lives in AZ but due to medical reasons I'm moving him to KY. I owe more then what the house is worth in AZ, i have talked with my lender about doing a short sale do to medical reasons, they informed me that due to my perfect payment history i don't qualify, now if i missed payments, i could possibly be qualified, unless my finances show i can make the payments. WHAT , does this sound right help. |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Hi David,
It is true that a lender will agree to a short sale depending upon your financial situation. You will have to write a hardship letter mentioning your financial hardship to the lender. If the lender comes to know that you're not facing any hardship, he will not be ready to go for a short sale. If your finances show that you will be able to pay off your dues, your lender will never give you a short sale.
I don't think it is a good option to miss your payments and then qualify for a short sale. Check out a discussion as why it is not beneficial to stop payments from the given page:
http://www.mortgagefit.com/shortsale/stop-payments.html
_________________
Procrastination is the enemy of your financial success |
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Michelle32
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Post subject: Short Sale or Deed in Lieu of forclosure. |
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My husband is military we have had our sale on the market for 6 months and he is being transfered out of the country in less than 2 months. We got the home on a VA loan and I am wondering which one of the two would be best. We are current on payments just there are so many homes being built and still for sale we haven't had any one offer us. We owe more than currently worth and we are needing to be out of the house like now and can't refinance it. Which one would you suggest? Which one is better as far as the hit with taxes and my mortgage company told me with the short sale the unpaid balance would be forgiven so is it or is the unpaid amount forgiven ont he deed in lieu.
Thanks |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Hi Michelle,
In my opinion, a deed in lieu of foreclosure would be a good option in this regard. As far as I know, the deficient balance is forgiven by the lender in deed in lieu. You'll not be liable to pay taxes on the deficient balance depending upon the Mortgage Debt Relief Act.
_________________
Procrastination is the enemy of your financial success |
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Mark R. B.
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Post subject: Questions about my DIL on a rental property |
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Jessica,
I purchased a condo in Miami as an investment rental property in 2005 for $280k. I paid 10% down in cash. I then took out an 80% loan and a 10% loan to finance the rest (both loans are interest only). I rented it consistently but still lost significant money each month. In October 2008, after discussions with my realtor, I decided to pursue a deed-in-lieu. In June 2009 Bank of America finally agreed in writing to accept my DIL. By the way, I paid both mortgagees on time every month up until B of A accepted the DIL. The property is now worth about $150k. Here are my questions. Will I receive a 1099 for one, both or neither mortgage? I understand a DIL is an "arrangement with the lender that includes surrender of the property to the lender by the borrower in satisfaction of the debt." If the debt is satisfied, I should not get a 1099 - right? In other words, unlike a true foreclosure where a 1099 is applicable, a DIL "satisfies" the debt. Please clarify. Thank you. Mark |
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pulido38
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Post subject: future liens and obligations |
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| I am opting for a deed in lieu on one of my homes. The other home I own with my ex-wife has substantial equity. Can the lender that I am turning over the house to go after the equity in my other home when we sell it. |
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Niicss
Joined: 03 Oct 2005
Posts: 4770
Location: New Jersey
499.28 Dollars($)
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Post subject: |
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Hi Mark,
If there is deficient amount resulting from the sale of the property after a deed in lieu, it is forgiven by the lender. As a result you would receive a 1099c form as it will be considered as your income and you will have to pay taxes on it. However, if the sale satisfies the debt, then you won't get a 1099c form.
Hi pulido,
In a deed in lieu, the deficient amount resulting from the sale is forgiven. Thus, the lender will not come after your other home to recover the balance amount. |
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scotttriplett02
Joined: 18 Feb 2010
Posts: 1
1.19 Dollars($)
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Post subject: deed in lieu |
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| I am getting ready to be discharged from the military and own a house in Florida. We do not plan on moving back there but we can not sell our house, is a deed in lieu an option and how long does it take? We would like to buy another house once we get to where we are going. How long will we have to wait? I am not really worried about the credit score since no matter what I do it will take a hit. Do we have to be behind to do a deed in lieu? |
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alice
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Post subject: deed in lieu on a 1031 exchange property and credit score |
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| does a deed in lieu of foreclosure have the same negative credit score rating on a 1031 exchange property? |
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Niicss
Joined: 03 Oct 2005
Posts: 4770
Location: New Jersey
499.28 Dollars($)
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Hi scotttriplett,
You can apply for a deed in lieu in order to get rid of the property. However, approving the deed in lieu would be completely the lender's discretion. It will take at least 90 days to complete the whole process. After a deed in lieu, you won't be able to get a mortgage immediately. You'll have to wait for 3-4 years in order get a loan. Also, it will lower your credit report by 250 points. You should have some kind of financial hardship in order to get qualified for deed in lieu.
Hi alice,
As far a I know, the negative affect of deed in lieu in case of 1031 exchange property will be the same. Your credit score would get reduced by 250 points. |
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TLM
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Post subject: I am running out of options. |
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| I have been trying to refinance / loan modify my mortgage. I have contracted with American Residential Law Group to help me do this. In July of 2006 in attempt to rebuild by credit took on a mortgage with a company in CA. We were at the closing table and still did not know the conditions of the loan. As it turned out I was signing a contract that had an 8.5% 30yr interest with a >$466 PMI. My mortage payment on a $216,000 loan was and is >$2400.00 a month. I had for three years been faithfull on this loan but due to a finacial hardship was despartely needing to refinace this loan. This attempt has been unsuccessful. I tried many times to refinace but have been turned down. I paid Amrican Residentioal Law group $2000 to help us get a loan modification. This has been going on since Nov. with no decision. I can not afford this loan and need advice on what to dol I feel helpless and feel my attempt to better myself has come to a deadend. This home has depreciated $40,000 in less than a year so now I owe more than the house is worth. Jessica what should I do??? |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Hi TLM,
As your property is underwater, lenders will not be ready to refinance your loan. In my opinion, you should apply for a loan modification and check out if your lender accepts it. If the lender accepts your request, then you would get better terms and conditions to pay off the loan.
_________________
Procrastination is the enemy of your financial success |
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margietatandoc
Joined: 01 Mar 2010
Posts: 2
1.58 Dollars($)
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Post subject: Short Sale vs. Deed In Lieu |
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| I have undergone credit counsellings, adjustments of mortgage and finally Mortgage Modification Loan within four years of struggle to save my house.Starting Feb. 2010,my monthly mortgage has gone up again to almost same mortgage prior to Modification Loan. Only 200 dollars monthly has lowered my mortgage(fr.the modification Loan). Now, I'm really exhausted and would like to seek a shortsale or Deed In Lieu of my house. I paid $469 for my house. I still owe around $402. The market value is much lesser,because my neighbors are selling their houses much lesser than my house. Please give me an advise on what to do? |
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TLM
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Post subject: Loan Modification |
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| As stated in my previous e-mail I have been trying to get a loan modification since November. |
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