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 liaoyu03
Joined: 09 Sep 2007
Posts: 166
4.00 Dollars($)
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 Posted: Tue Oct 09, 2007 8:58 am Post subject: deed-in-lieu and short sale |
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what's the difference about a deed-in-lieu of foreclosure and a short sale?
and which does the creditor prefer to select? |
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Mac_7
Guest
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| Posted: Tue Oct 09, 2007 9:34 pm Post subject: |
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Deed-in-lieu of foreclosure is when you transfer your ownership rights on your home to the lender as you are no longer able to pay and are in default.
Short sale is when you sell the home to pay off the mortgage on it and cannot get a sale price which can cover the entire balance. It is also known as pre-foreclosure sale.
Lenders prefer a short sale because it allows them to collect the deficiency through a judgement which a deed-in-lieu does not allow for. |
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jenkin7
Joined: 04 Jun 2007
Posts: 3429
Location: Hawaii
514.13 Dollars($)
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| Posted: Wed Oct 10, 2007 5:54 am Post subject: |
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Hello Liaoyu,
There are certain conditions which you need to fulfill before you can file a deed-in-lieu.
1. You are in financial hardship and unable to pay mortgage.
2. Your home has been listed with a real estate agent for at least 30days.
3. There are no other liens on your property.
4. The deed-in-lieu has been filed 60 days prior to foreclosure sale.
You may look here http://www.mortgagefit.com/deed-lieu.html for more information on this.
If you have payment defaults, you can think of a short sale, also known as pre-foreclosure sale in order to avoid foreclosure. You may look here http://www.mortgagefit.com/pre-foreclosure.html for further information. |
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