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janetboccelli · Joined: 17 Sep 2009 Posts: 1 1.00 Dollars($)

From Massachusetts:
If we request a Deed in lieu instead of heading for foreclosure...are we responsible for any deficiencies if the lender does not recuperate their loan to us?

jameshogg · Posted: Thu Sep 17, 2009 8:45 pm Post subject:

Hi janetboccelli,

If you are applying for a deed in lieu of foreclosure for your principal residence, then you won't have to worry for the deficient amount if it's a purchase money mortgage. The lender will forgive the deficient amount resulting from the deed in lieu of foreclosure.

Thanks

Guest

Thank you for your response. Unfortunately the property is a Commercial Condo an we have been out of business there since February 09. Wehave tried to carry it and are now totally unable to do so. How do we avoid having to pay for any deficiency when the lender sells the property. Deed in lieu or do we go to foreclosure. Our credit is pretty shot now anyway....
Thanks so much!

smithsussane · Posted: Sun Sep 20, 2009 8:35 pm Post subject:

Hi Janet!

Welcome back to forums!

As it is a commercial condo, the lender can sue you for the deficient amount whether you go for a deed in lieu or a foreclosure. I would suggest you to negotiate with your lender and check if he is ready to forgive the deficient amount or not. If he is not ready to do so, you will have to pay off the deficient amount.

Feel free to ask if you've further queries.

Sussane

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Deed In Lieu vs foreclosure