pleasehelp

Guest 0.10 Dollars($)

I took a home equity loan out on my house and opened a fast food restaurant, im doing ok but they stopped letting me take any draws on the loc, i needed the credit to get me through the slow season, i can see myself getting behing on both my home mortgate and loc very soon, does anybody think a Deed In Leiu of Foreclosure is a good idea for me

sleepless in boca

Jim

brian1 · Posted: Sun Jun 22, 2008 6:57 pm Post subject:

Thats a very tough call. Are you sure you are going to fall behind on the home? Is the home worth more than what you owe? If it is then get it on the market. A deed in lieu or a shortsale are going to hurt your ability to buy in the future the same as a foreclosure. I would look at all options before making a decision....

Good Luck
Brian

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Guest.

Welcome to the forum.

I don't think that deed in lieu is a option for you. You should talk to your lender ASAP and inform him about you problems regarding the mortgage payments. See if he can give you some options to avoid this problem.

There are so many ways to get out of this problem. Please have a look at http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Hope this helps. Feel free to ask if you have any further questions.

Best of luck,
Larry

gmakerley · Posted: Mon Jun 23, 2008 12:27 pm Post subject:

i think the first thing you ought to be thinking about is how you're going to make payments; not if you should default on the loan by way of a deed in lieu.

john · Joined: 23 Jun 2008 Posts: 36 17.30 Dollars($)

or how about possibly refinancing the home. are you behind now? is there any equity to lend on? just an idea.

cliff · Posted: Tue Jun 24, 2008 11:02 am Post subject:

Hello sleepless in boca,

Since you are already anticipating future difficulties with your mortgage and loc, please contact your lender right away!
You do not want to become delinquent and have your lender place you in Foreclosure. Communicate with them right away! A Foreclosure will hurt your credit.

There are several options that your lender will have available for you as a new workout plan. Keep in mind that a short sale will be a better option than a Deed in Lieu. Make sure with the short sale option that you do not rely upon the online assesments of the value of your home. Always seek a local appraiser to find your current market value in your neighborhood.

And besides, your lender cannot entertain the thought of a Deed in Lieu unless you have met these criteria before you offer a Deed in Lieu to your lender:
1. You must be eminently facing foreclosure.
2. You must have listed your property for at least 30 days.
3. You must be unable to sell your property.
4. You are not qualified for any other workout plan with the lender.
Also remember that a Deed in Lieu is much more damaging to your credit than any other option.

I certainly hope that you have received enough information to move forward. And once again, please contact your lender right away!

Good luck.

jbarto65 · Joined: 04 Nov 2007 Posts: 626 -0.11 Dollars($)

great post cliff, I did not know half of what is there, thanks.

cliff · Posted: Sat Jun 28, 2008 3:13 pm Post subject:

Thanks I try I'm hoping to bring the most up to date information available to help people who find themselves in these difficult situations.

I’m thinking about putting on a “free” webinar about the subject, to help mortgage professionals and home owners with these mortgage problems!
Very Happy

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