Choose Deed-in-lieu-of-foreclosure? Once property sells, wil

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

Hello,

I purchased a condo 2 years ago. I was married a year later. I am currently seperated and have moved back into my condo. I am caring for an ill parent and a mentally ill sibling (who do not reside with me). All of my bills are current including mortgage and I've never been late on any of my accounts.

I have a first mortgage and second mortgage (line of credit). I've been using my credit cards for living expenses and am now at the point where I need to act fast and decide how to get out from paying such a high mortgage.

If I follow through with a deed in lieu of foreclosure, will I be responsible for the difference if the unit sells for less than my mortgage? Any advice would be appreciated.

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

Hi Bizzyb,

Welcome to the forum.

You should consult with your lender ASAP and try to avoid foreclosure. DIL is good but it will also have a huge negative effect on your credit and lenders do not always accept DIL. I think you should first try out short sale. If you cannot sell it out then you can think about DIL.

You can check out this article to know how to protect yourself from the foreclosure trap at - http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Feel free to ask if you have any further questions.

Thanks,
Larry

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