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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Hi!
Welcome to forums!
To Margie,
You should apply for a deed in lieu of foreclosure by writing a hardship letter to your lender. He would judge your financial situation based on that and then let you know whether or not your request is accepted. If your lender accepts it, then you will have to surrender the property to the lender. He will sell off the property and try to recover his dues. The deficient amount will be forgiven.
To TLM,
Did you speak to your lender and requested them to speed up the process of loan modification? If not, then you should do so. You should contact your lender and check out whether or not they would give you a modification. If the modification is not accepted then you may apply for a deed in lieu of foreclosure and try to sell off the property.
Feel free to ask if you've further queries.
Sussane |
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ratrat3
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Post subject: fees, costs |
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| Can anyone come after me for the difference of what they sell the house for and what I owed? What if my mortgage company refuses to do a deed in lieu of foreclosure? What should I do then? |
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sara
Moderator
Joined: 05 Jul 2006
Posts: 2645
Location: New Brunswick, New Jersey
488.43 Dollars($)
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Hi ratrat,
If your deed in lieu of foreclosure is accepted by the lender, then he would forgive the deficient balance resulting from the sale of the property. However, if the property is foreclosed upon by the lender, then you would be responsible for the balance amount.
If your lender refuses the deed in lieu, then you can re-negotiate for it. If the lender still does not agree, then you've hardly anything to do. The lender would foreclose your home and recover the dues.
Take care. |
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KarenZ
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Post subject: Credit Score and Deed in Lieu |
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| How is your credit score impacted if you go through a Deed in Lieu and your mortgage is never late and there is no deficiency? Also, can you negotiate how it will be reported on your credit report prior to agreeing to a settlement? |
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Hi KarenZ!
Welcome to forums!
Your credit score would be lowered by 250 points if you sell off your property though a deed in lieu of foreclosure. You can negotiate regarding the report of deed in lieu to the credit bureau. But it would be the lender's discretion whether or not he would accept your request.
Feel free to ask if you've further queries.
Sussane |
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aquam33
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which is best in terma of credit affect.
1 deed in lieu
or
2 short sell |
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smithsussane
Joined: 18 Sep 2008
Posts: 10030
Location: Alaska
919.49 Dollars($)
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Hi aquam!
Welcome to forums!
Short sale will have a lesser negative effect on your credit report compared to a deed in lieu. A short sale will reduce your credit score by 80-100 points and you may be able to get a loan after 2 years. In case of a deed in lieu, your score would get lowered by 250 points and you'll be able to get a loan after 3-4 years.
Feel free to ask if you've further queries.
Sussane |
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Shelley
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Post subject: Financial advisor |
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| My husband and I went in and talked to a financial advisor, when we left his office I think that we were both confused by what he had to say. We are not behind on our mortgage but we are having a hard time paying our other bills. When we bought this house two years ago my husband had a really good paying job and we could afford the house but then his boss retired and now we are having a hard time staying above water. Can we please get some kind of advise on what way we should be thinking? A short sale? Deed of Lieu or some other way to get out of this house, so that we can get back on track. Thank you so much, Shelley |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Welcome Shelley,
If you want to save the property, then you can apply for a loan modification with your lender. You will get modified terms and conditions to pay off your mortgage. If you want to get rid of the property, then it would be a good option to go for a deed in lieu of foreclosure. This will not only help you in selling off the property but you won't be liable for the deficient balance. However, your score would go down by 250 points.
_________________
Procrastination is the enemy of your financial success |
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janet preble
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Post subject: warrenty deed |
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| Lawyers for bank of am. and federal national mortgage association gave me a warrenty deed to fed.nat.mort.assoc. for property after a forclosure papers were recorded as lis pendens. bank america said they had forclosed but attorneys said it was not completed as i gave them a warrenty deed to fed.nat.mort.assoc. can bank america still charge me with forclosure on credit report???? bank of am recorded a satisfaction of mortgage. what is up?? lawyers say do not worry.. |
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janet preble
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Post subject: warrenty deed |
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| before i was late in first payment i called and wwrote to bank telling them of my situation. my husband was diagnosed with III stage lung cancer and i had to quit work to take him for treatment etc. our children moved us as my husband could do no lawn etc work. they kept me hanghing for a year until i contacted their lawyers and got ball moving. |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Hi janet,
If Bank of America has sold off the property in a foreclosure auction in order to recover the dues, then the lender has the rights to report it to the credit bureau. You need to contact the bank and ask them to clarify the whole issue.
_________________
Procrastination is the enemy of your financial success |
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SML
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Post subject: Deed in lieu vs short sale |
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| My 30 year old son is in the military now after being unemployed for over a year. He is a college grad who got laid off. His home is worth half of what he paid for it and all he can do is make the payments thanks to his girl friend and her brother making rental payments for 2/3 of the mortgage payment. After the car payment & college loans payments there is nothing left for him to spend on clothes or any relaxation much less saving anything. Why should he go for a short sale and then get slammed with paying income taxes on the balance owed the mortgage company or continue to make payments on that unpaid balance left after the short sale? Why would he pay back the $70 to $100,000 when there is nothing he will gain from it? Also, he'd never be able to buy another home because he'd never be able to afford a new mortgage in addition to the old mortgage payback. And if he can't save anything how would he ever be able to afford the down payment on a new mortgage? With a deed in lieu of he can be rid of this albatross, repair his credit in a few years and save the bank the trouble of going through an expensive foreclosure proceeding. He's maintained excellent credit since being out of college and been a responsible homeowner. He is not to blame for the predicament he is in. Why don't financial advisors really explain the small print of the other consequences of going for a short sale - the taxes and the paybacks? |
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adonis
Joined: 22 Oct 2005
Posts: 10250
Location: ALASKA
1043.57 Dollars($)
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Welcome SML,
It is always better to go through the mortgage docs once the lender originates the loan. The consequences of not paying off the mortgage are written on the loan docs. If your son would have gone through the doc, then he would have come to know about the consequences of the non payment of the dues.
I think it is always better to go for deed in lieu of foreclosure in order to get rid of the property. Though, this will lower your score by 250 points, your son won't be liable for the deficient balance resulting from the sale of the property.
_________________
Procrastination is the enemy of your financial success |
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ann
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Post subject: divorce |
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My exhusband wanted to keep our 8,000 square ft. home on 5 acres to help his ego after our divorce. Now, 2 years later he won't keep up the payments and he is unable to refinance because he has such poor credit scores. Some debt solution company took his $4000.00 and told him to stop payments so that he could get a "hardship loan" and get the principal reduced. My name is on the 1st loan with his but is the only one on the $250,000 2nd loan. A total of $650,000 is owed on the house. A man told me instead of forcing my ex to sell the home that I should "deed in lieu of Forclosure." I've purchased a small home for myself and am unable to make my home payment along with my exhusbands. What should I do? I'm taking him to court for contempt but if I force a sale of the house I could get 1-3 years of late pays on my credit before it sells which I don't want. Is a deed in lieu for me?
Please help,
Ann |
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