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slorenz101 · Joined: 25 Aug 2010 Posts: 2 1.55 Dollars($)

I live in Idaho. I had a bankruptcy in 2008. I have an upside down mortgage ($120 worth - $ 180 owed). I have a loan modification that is a 5 yr. ARM that jumps by $150 / month on each anniversary date until I am paying $1200.00 month in the last year. I work full time and bring home $1300.00/ month. Can't make the payments.

I have $30k in an IRA as my only asset.

Foreclosure, short sale, deed in lieu. Which is best? If I am hit with a deficiency judgement, I have no way to pay. If I get a 1099 of any type, I cannot pay. I am two month behind in the mortgage payments and feel like a deer in the headlights...frozen. Can I re-open my backruptcy and add the house?

smithsussane · Posted: Wed Aug 25, 2010 9:28 pm Post subject:

Hi slorenz!

Welcome to forums!

It will be difficult for you to reopen the bankruptcy and add the house to it. If you want to get rid of the property, then you can contact the lender and apply for a deed in lieu of foreclosure. This will not only help you in selling off the house, but you won't be liable for any deficient balance even. Also, you won't have to pay the taxes on the forgiven debt due to the Mortgage Debt Relief Act.

Feel free to ask if you've further queries.

Sussane

Guest

With all the foreclosures and short sales happening right now, what incentive can I give the lender to give me the deed in lieu of foreclosure? and how long does that proceedure take?

adonis · Posted: Fri Aug 27, 2010 2:30 am Post subject:

Hi Suzie,

I don't think you need to give any incentive to the lender in order make him agree to a deed in lieu of foreclosure. You can apply for it and it would be completely the lender's discretion whether or not he would agree to it. A deed in lieu of foreclosure will take around 90 days to complete.

slorenz101 · Joined: 25 Aug 2010 Posts: 2 1.55 Dollars($)

So, I contact my lender and ask for a deed in lieu of foreclosure form? Is the deed in lieu something the lender is inclined to do? Do I need an attorney for this?

sara · Posted: Mon Aug 30, 2010 3:33 am Post subject:

Hi slorenz,

You need to write a hardship letter to the lender and apply for a deed in lieu of foreclosure. The lender will go through the letter and let you know whether or not you would get a deed in lieu of foreclosure. It is completely the lender's discretion whether or not he would consider your request.

Take care.

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