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Guest

Husband and Wife - 66 yrs. and 62 yrs. old. Lost our jobs, living on savings. Can only last 8 more months on our savings. Cannot sell our house. Have no other loans except house. What should we do, file bankruptcy or when our savings run out let the bank foreclose and loose our home.? We have an interest only loan. Still owe $800,000.00 on house.

adonis · Posted: Fri Jan 30, 2009 12:13 am Post subject:

Welcome Plato,

I can understand that you're going through a tough situation. Are you still current on your payments? If not, then you may request the lender for a deed in lieu.

In deed in lieu, your property will be sold by the lender to recover his debts. The deficient amount from the sale of the property will be forgiven. But it will lower your credit score by around 250 points.

If you are current on your payments and want to save the property, then you can try to refinance it at a lower rate.

Guest

But if you do a deen in lieu you receive a 1099 at the end of the year which is considered a gift and is taxed @ 25%, correct?

jameshogg · Posted: Mon Oct 05, 2009 11:58 pm Post subject:

Hi Hope,

In case of a deed in lieu of foreclosure, though the lender forgives the deficient amount, you won't be liable to pay the taxes as per the Mortgage Debt Relief Act. To know more about the Mortgage Debt Relief Act, check out the following page:
http://www.mortgagefit.com/california/debtrelief-act.html

Thanks

Guest

My husband died suddenly and left me in a difficult financial situation - I have a good paying job and am working through things as I go - but there is no extra ready cash on hand. or in the esstate hopper. I have a plan worked out where I can pay all of my joint debts plus the house and living expenses, except for the Wyndham vacation timeshare deeded NC. I still owe money on that loan plus monthly maintenance fees. I just do not know what to do - I thought foreclosue would be good since it is not my primary residence but now I am not sure b/c i read here on the forum I might have to pay the diff if the company can even resale? Timeshare business I am sure is down like everything else. I do not want to keep it and the company does not seem receptive to any conversations about what I can do. any advice?

Niicss · Posted: Fri Feb 05, 2010 2:48 am Post subject:

You can contact your timeshare company and apply for a loan modification. If the interest rate is reduced by the lender, it would become easier for you to pay off the loan. If the lender does not agree to it, then you can apply for a deed in lieu and sell off your property. You won't liable for the deficient amount then.

Guest

I am in a situation where I have been unemployed for 1 1/2 years and unemployment ran out. Husband has income weekly, but still in negative with payments including the mortgage. Are just about 90 days late and the mortgage loan servicer says that we do not qualify for deed in lieu at this time only foreclosure. What would be the best option of the 2 or should we file chapter 13

smithsussane · Posted: Tue Jun 29, 2010 2:04 am Post subject:

Hi lpt!

Welcome to forums!

Deed in lieu is a better option compared to a foreclosure. Unlike foreclosure, you won't have to pay the balance amount resulting from the sale of the property. However, the credit affects in both the cases are same. Again, it will be the lender's discretion whether or not he would help you with the option of deed in lieu. I would suggest you to negotiate with the lender once again for a deed in lieu. In case, the lender is not ready, then you can go for Chapter 13 bankruptcy.

Feel free to ask if you've further queries.

Sussane

Guest

we filed for chapter 13 three years ago and surrendered our home. we moved to another state. We received a foreclosure notice from the bank. Apparently, the home is still in our name. Can the mortgage company foreclose on us now or our we protected by our chapter 13? help

adonis · Posted: Mon Aug 16, 2010 12:02 am Post subject:

Welcome Teresa,

Though you filed bankruptcy, the lender will be able to foreclose as he holds the lien on your property. However, the lender will not be able to come after you for the balance dues resulting from the sale.

Guest

We can't afford to pay to have our home repaired and want to let it go should I do a bankruptcy or foreclosure. I'm the only one on the loan but I had a chapter 7bankruptcy 7 hrs ago

smithsussane · Posted: Mon Nov 08, 2010 4:34 pm Post subject:

Hi Hova!

Welcome to forums!

You won't be able to file bankruptcy before 8 years of your previous filing. In such a situation, you can contact your lender and apply for a deed in lieu of foreclosure. This will help you in getting rid of the property and you won't be liable for the deficient balance resulting from the sale of the property.

Feel free to ask if you've further queries.

Sussane

akirasmith · Joined: 12 Nov 2010 Posts: 4 1.67 Dollars($)

If you face an overwhelming dilemma of the decision to file for bankruptcy, foreclose on your home or to request a short sale, short selling is what you want to take fully into account before a lender files to ignore in its home.One way to avoid that exclude your home and bankruptcy is to contact your lender and get approval to do a short sale, which means the sale of your home for less than its worth.

Guest

We have 6 residential investment properties that are bleeding us to death with tenant turnovers, swatters, judgments and repairs.....have credit scores over 800 and never been late! So the mortgage companies won't negotiate with us. No more money and have been advised by the attorney to stop pay and do chapter 7 for relief..........any less drastic options?

adonis · Posted: Wed Dec 08, 2010 11:47 pm Post subject:

Welcome Jerwil,

Unless you're late on your mortgage payments and you're facing financial hardship, the lender will not be ready to help you in this matter. If you can afford, stop paying the dues for a month and try to negotiate with the lender in order to get a deed in lieu of foreclosure. This will help you in selling off the property and you won't be liable for paying the deficient balance resulting from the sale of the property.

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