Deed in Lieu

Guest 0.10 Dollars($)

My husband and I own an indenpendent pharmacy. My husband is not a pharmacist we just own a pharmacy. Because of medicare part D we now make 50% less than we did when we purcahsed a $670,000.00 house. In june our bussiness will suffer another 36% cut because of another government plan regarding prescription reinbursement. this pharmacy (which we purchased 3 1/2 years ago) it's the only place my husband ever worked at (he has been there almost 19 years) he has no college degree and I'm a full time college student. We have two kids and now we are basically being forced to sell our bussiness for no profit to pay the lenders from when we bought the pharmacy. We are considering a deed in lieu for our house since there is no way that my husband can make enough money after the pharmacy sells to make a $5,000.00 mortgage payment.
Do you think we're good candidates for a deed in lieu?
Should we aware of anything regarding this process?
Thanks for any help!

Guest 0.10 Dollars($)

Hi,

You are really in very difficult situation. Hope you can come out of it somehow.

With information you have provided deed in lieu seems to be the only way out this problem. You can also try to sell the house if the market is good, possibly make a profit and start a new small business.

Another option could be that you & your husband rent out part of the house, he finds some job and request the lender to extend the loan term so that the monthly payments gets reduced and you can afford making payments.

Guest 0.10 Dollars($)

The house has been on the market since August 06, we've lowered the price several times even trying to do a short sale. We were advised to purchase a smaller, affordable house before filling for deed in lieu and so we did. We have purchased a house we can afford a month ago and moved out of the big one. Our new mortgage is $1400.00 and that's about all we will be able to pay as far as morgage goes. But selling the big house is proving to be nearly impossible.

carnahandavid · Joined: 21 Dec 2006 Posts: 239 58.41 Dollars($)

Hi Mbrwr,

Unforeseen happenings have badly affected your life. What I can suggest is that you take it in your stride and things will again start to improve slowly.

As the housing is not selling in the present market and you also cannot find a tenant then deed in lieu remains the only option to use.

A deed in lieu of foreclosure will affect your husband's credit score or if both of you are on the loan then credit scores of both of you will get affected. But it will be less damaging than what a foreclosure will result in.

Caron

Hi Mbrwr,

Welcome to our forums.

I can understand what you are going through. Unfortunate things at times happen and the best way to deal with such things is to have patience and a cool mindset.

Considering your situation, I think a deed-in-lieu will be the right option for you. But are you sure that your house is worth the amount you owe. First of all, I think you should try finding this out. I guess when you talk to the lender about the deed-in-lieu, he will be interested in evaluating your property value and finding out whether he will get back his investment by selling it to a prospective buyer.

You are saying that the house is not getting sold. But have you taken the help of any real estate agent? Such professional do help a lot provided you can find out the right person.

In case you have any questions or clarifications regarding deed-in-lieu, please put it down in this thread and let the community help you.

You can also refer to our section on Deed-in-Lieu to know more about the process.

Thanks,

Caron.

0.10 Dollars($)

My house has been on the market with a realtor. Actually with 2 different realtors. One wokred with us fir 3 months and we hired a new one in November through now. It's just a tough market. The purchase price of the house was $743,000.00 the appraisal came back at $670,000.00 (we were obligated under contract with the builders to purchase it anyway) so we did. We put down the difference and got a loan for $670,000.00 The house is currently on the market for $620,000.00 and still not selling.

helping_user · Posted: Sun Apr 08, 2007 11:33 pm Post subject: RE: trouble selling home

Hi Guest,

Where is the property located? Just asking in case I can tell you something about the market conditions. May be this is not the right time you should sell the house. You can start paying for the loan while staying the property and then when he market is favorable, you can put it up for sale. This will help you to save the dollars that you are paying for the services of the realtors.

Thanks.

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