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doldo_2000 · Joined: 23 Nov 2009 Posts: 2 1.59 Dollars($)

My husband and I moved to Louisiana in February 2008. We were able to rent our house until June 2009, since then it is sitting empty and on the market. I bought it for $ 118,000.00, at the moment the value is about $60,000.00 due to the comps in the neighborhood. I already dropped the selling price to 99k (short sale) however there was not one showing. Even the "we buy ugly houses" companies are not interested in buying. We do not intend to return to Georgia and honestly I just want to get the house off my shoulders. We have average paying jobs, but paying for a rental and mortgage (as well as an equity loan) is catching up on us. All mortgage payments are on time, so I was considering deed in lieu of foreclosure. The house has a 5/1 arm mortgage as well as an equity loan; what would happen with that? How do I get a deed in lieu of foreclosure started? Any advice is appreciated!!

smithsussane · Posted: Mon Nov 23, 2009 11:00 pm Post subject:

Hi doldo!

Welcome to forums!

You will have to write a hardship letter to the lender stating the reasons for the request of a deed in lieu of foreclosure. The lender will judge your hardship based on that letter and will let you know whether or not he would accept your request. If your first lender accepts your request, he would forgive the deficient amount resulting from the sale of the property. However, if the sale does not satisfy the equity loan, then you would be responsible for paying it off.

Feel free to ask if you've further queries.

Sussane

doldo_2000 · Joined: 23 Nov 2009 Posts: 2 1.59 Dollars($)

Thanks for your answer! Should I continue making payments on the mortgage and the equity loan? My hardship is that I moved away and am not able to sell the house...it puts a financial strain on me. When they request the financial statements, do I also give them the bank account of my husband? He is not on the paperwork of the mortgage...

jameshogg · Posted: Tue Nov 24, 2009 11:45 pm Post subject:

Hi doldo,

I would suggest you to keep on making the payments while you apply for the deed in lieu of foreclosure. If your lender asks you to stop your payments, then you can consider the option. As you're on the mortgage, you'll have to give your financial statements or pay stubs to the lender. I don't think that the lender will ask for your husband's financial statements.

Thanks

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LIve in another State and cannot sell house