Can mortgage company come back on me if I give my condo up d

bizzyb67 · Joined: 18 Feb 2008 Posts: 2 1.68 Dollars($)

Thanks for all of your advice. I want to let my property go, its just I dont know the best way to go about it. I have tried selling it with a realtor and on ebay.

If I do deed in lieu of foreclosure, will it affect my credit the same as letting my condo go into foreclosure? Also, can the morgage company come after me for the difference in what the unit sells for and my morgage?? Thanks

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Bizzyb,

Welcome back.

Deed in lieu of foreclosure will effect you credit like foreclosure. In DIL your credit score will be dropped by 200 to 250 points but in Short sale your credit will be dropped by 80 to 100 points. If you go for DIL it will stay on your credit for 10 years.

"Also, can the morgage company come after me for the difference"
Generally lenders do not come after you if he accepts DIL. Consult with your lender and see what he says.

Feel free to ask if you have any further questions.

Thanks,
Larry

jameshogg

Hi Bizzy,

I suppose you couldn't sell off the property due to market conditions, is that so? may be home prices in our area are down as it is in some other counties.

Considering the fact that you may not have to pay the deficiency if you go for a deed-in-lieu, I suggest that you choose this option only. But whether you do a deed-in-lieu or a short sale or the foreclosure, in each of the ways, you'll lose some points off your credit score. So, the best thing will be to rent out the property for some time to a tenant who intends to become a buyer at the end of a certain period of time.

You can use the rent payments to pay off the mortgage and at the end of a certain period, you'll be able to sell the home too. What I am trying to say is that, you go for a lease to purchase option.

Thanks

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