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 vulloa2003
Joined: 13 Nov 2008
Posts: 1
1.62 Dollars($)
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 Posted: Thu Nov 13, 2008 9:35 am Post subject: Is deed in lieu a good option for me |
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| Hello, I was recently "lay-off" after 12 years of working for this company, I have some savings (not much really) this may help me navigate and pay my mortgage for about 2-3 months while I try to find another job but I f I don't, would a Deed in lieu of foreclosure be an option for me and my family? I really don't know what to do... any advice would be really appreciate. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7445
Location: bloomfield, ct
69.81 Dollars($)
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| Posted: Thu Nov 13, 2008 12:37 pm Post subject: |
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if and when you find yourself unable to make payments on your mortgage, the first thing you need to do is to contact your mortgage lender and discuss the situation. there may be ways in which you can ease your pain - especially with all the new programs that have been and are being introduced these days.
you seem to be anticipating the worst, but you've no guarantee that you won't find a new job that would enable you to continue making payments. i'd suggest you strive to hold on to this home for as long as you can, but speak to them to see what arrangements you can make.
as to your question - yes a deed in lieu of foreclosure would be better than the foreclosure itself.
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George M. Akerley
Loan Consultant
860-221-5044 |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Thu Nov 13, 2008 7:32 pm Post subject: |
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Hi vulloa!
Welcome to forums!
You can even try the option of forbearance provided your lender agrees to it. This is a plan by which the lender may reduce your payment amount. There are chances that he may suspend it for a few months. This will help you to get back on track and continue paying as usual.
Forbearance is also accompanied by a repayment plan suggested by the lender such that the dues are adjusted with the regular monthly payments later on when the suspension is over. In this way, you will also be able to save your property.
Feel free to ask if you have further queries.
Sussane |
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carlpruitt
Joined: 09 Nov 2008
Posts: 43
Location: Buford, GA
21.09 Dollars($)
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| Posted: Thu Nov 13, 2008 7:43 pm Post subject: |
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For FHA loans, there is no difference between a deed in lieu and a foreclosure. You must wait three years after either one before becoming eligible for an FHA loan.
I agree with George's post above. Don't turn negative so quickly. It just adds to your stress. Even so, don't wait to start doing something about it. In the past, I would have said to go ahead and speak with your lender to start trying to work something out before things go wrong. However, with the crazy level of foreclosures going on now, there is a chance they won't have the staff time available to deal with it until you are actually late.
In another thread on the forum, Sussane referred the person with the problem to an awesome page full of advice on this very issue right here on this site. You can find it at http://www.mortgagefit.com/foreclosure/17ways-avoid.html. I have people contact me daily through my personal websites who have this problem and I am going to be referring them all to that link. It is great advice.
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Carl Pruitt
FHA Loan Advice
3 Power Tips For Writing Effective FHA Credit Explanation Letters
FHA Bankruptcy Guidelines |
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