Posted: Tue Sep 23, 2008 7:43 am Post subject: Is a DIL the right answer for us and what ramifications?
We live in Michigan and built a model home three years ago in order to have a 'show home' for our construction business. We used personal funds/loans for the construction. The home has been on the market for three years and has not sold. We listed with an agent for two+ years and currently took it off the market so it could relist as a new listing in a few months. We have been making the payments (a Home Equity Loan) of $1250/month and paying property taxes etc. With the mess in the economy and real estate industry in our area we know we are just chasing good money with bad. At this point we just want to be DONE with it and turn the mortgage back over to the bank. What is our best bet and how should we handle this? Should we stop making payments and let them forclose or offer something upfront. I don't want to end up owing the bank money when we're done. The home value is somewheres around $200-250k and we owe $193K. HELP???
You can ask the bank for a DIL but it is totally the discretion of the bank if it will agree to it or not. If the bank forecloses the property then, you will not be able to ask for a DIL. Remember that both foreclosure and DIL will have a negative impact on your credit score though in DIL it will be much lesser.
Hope this will help you.
Thanks,
Jerry
Susanne Guest
Posted: Fri Sep 26, 2008 12:13 am Post subject:
Hi deb!
If the lender agrees, then the deed-in-lieu will be a better option than foreclosure. Foreclosure will affect your credit badly than a DIL.
deb
