the deed in lieu does have a negative affect on a borrower's credit rating and as such it may prevent him from getting loans till he can build up a fair credit score and hence get well rated by a lender.
You can get a new mortgage after DIL but the lenders will be offering higher rates than normal. As the DIL will show up on the credit report, you should try to improve upon your score for some time and then apply for a new mortgage.
Posted: Sun Oct 15, 2006 9:35 pm Post subject: RE: can deed in lieu prevent borrower from getting mortgage
Hi turner,
Not really, it won't be that impossible, but yes, you do need to search for the right lender. Usually it becomes difficult for borrowers having done a deed in lieu to get a home loan.
Take my word of advice - just for a few months, practice good money management skills and pay all your bills on time and you will be able to get a preferable loan.
Posted: Tue Jun 19, 2007 1:27 pm Post subject: Deed-in Lieu
Iworked 6months on having deed in lieu approved I took all steps the bank
required of me I was called an told my dded in lieu had been approved
When I would call the bank loss mitagation would reasure me I was approved I then recived notice from their lawyers that sale of house foreclosure was accuring. Do I have a right to fight ?
If the DIL was approved then why they started the foreclosure process? I can't seem to figure out the reasoning behind it. Did you contact the bank to know the reason and what did they say?
I do understand what you must be going through. What you need is to be very calm.
You do have the right to fight. Firstly, you need to ensure that you have the written approval of the deed in lieu from the lender. This would help you in legal proceedings as it would be a proof against the lender who is doing foreclosure. You can consult a lawyer who would be able to guide you to resolve the problem.
Posted: Wed Oct 17, 2007 12:41 pm Post subject: dil
i have a rental property im getting ready to file dil and im also going to file bankrupcy should i file dil or should i let it go to foreclosure and file bankrupcy
It seems that you are in some sort of financial trouble. Why do you want to file bankruptcy? are there debts other than the mortgage on your home.
Filing bankruptcy and going for a deed-in-lieu or foreclosure will affect your credit very badly, so think before you go for both the options. If you can give me some more details, may be I can help you in taking a decision. _________________ Procrastination is the enemy of your financial sucess
Posted: Thu Oct 25, 2007 10:32 am Post subject: Job Relocation-Need to Sell house fast or find other options
My husband recently was offered a job about 2 hours from where we currently live. We are going to have to move on account of this. He starts the job in 3 weeks but we have to do something with the house we have currently before we can get into anything else where we are going. We have looked at the option of selling, but don't think we will be able to sell it that quickly. What other options besides the Deed in Lieu would the mortgage company provide?
Posted: Fri Nov 16, 2007 6:13 pm Post subject: short sell or DIL
Hello,
We have a newly constructed Spec home. We first offered the home for sale @ 850,000. exactly the time real estate prices bean to fall in our area. It is hard to get comps due to the unique nature of our house. It is 5,000 plus feet, with year round 50 + mile views of mountains and valleys below. We have since reduced the price 3 times over the last 18 months to a current 629,900.
We have a lot of interest but no offers, here is the issue we are not insolvent, we actually have app $40K in the lenders bank, but I have a new business that needs the operating capital, another property ( mortgage held by the same bank) that is in a lower price range I could rent. so I want to offer this property to the bank in lieu of foreclosure. Are they likely to accept knowing i'm not broke, can they call both notes due? Can they take the money I have in a money market in their bank, should I close out my accounts before I mention anything to them???
Posted: Fri Nov 16, 2007 10:58 pm Post subject: RE: deed in lieu and short sale
Hi Tony,
Welcome to our forums.
Do you wish to offer the property in lower price range for deed-in-lieu? if that is so, then the lender will not accept it until and unless you have a late payment or have missed the payment once or twice. But I suppose you are current on the loan isn't it?
You've mentioned that you've thought of offering the home for rent. Is there any offer as such? If you get a suitable offer, then I think that's a good option. At least you will be able to keep the home and there won't be any negative affects on your credit score due to a short sale or a deed-in-lieu.
However, if you go for a deed-in-lieu on one property, it will not affect the mortgage on another property. The two have different contracts after all. Regarding your accounts, well, you can close them but they can only be seized in case you go for a short sale and are unable to pay for the deficiency.
However, you have to pay the deficiency only in case of short sale and not a deed-in-lieu and that too, if the lender doesn't forgive the unpaid debt, that is, any difference in the short sale price and the money you owe.
Posted: Mon Jun 30, 2008 12:02 pm Post subject: Business Foreclosure
I have a small store in rural Vermont that we havent been able to pay mortgages on for about 3 months. We had people ready to buy it but it doesn't look like that may happen and the bank has been scheduling that bankers to go in and take pictures of the property. They have not sent us anything on foreclosure yet. We also are back on our taxes about 5 grand (property taxes). The business that is in the building was closed last month.
What is the best option as far as being a business to make sure we come out as clean as can be. Deed in Lue of? We are a sole proprietor other than the business we have no assetts that the bank can take.
Thanks
I feel you should contact the loss mitigation department of the mortgage company or the bank ASAP and tell them about the problems that you are facing to make the monthly payments. You may need to send a hardship letter stating the causes for which you are not able to pay the mortgage payments. Know about loss mitigation process at http://www.mortgagefit.com/loss-mitigation.html
Let me know if you have any further queries. _________________ Good is the Enemy of Great.
sara
