could we be accepted for DIL

hogey44 · Joined: 19 Apr 2009 Posts: 1 1.30 Dollars($)

have an investment property which we can not afford, We cannot seem to sell it. we owe 330,000. have a line of credit from another bank for 300,000 and a 1st mortgage for a 135,000. Will the bank accept a DIL for the investment house, if not what else can we do? We are in NJ will we get taxed on the difference or will the forgive it? please help we are totally stressed.

jenkin7 · Posted: Sun Apr 19, 2009 10:37 pm Post subject:

Hi hogey,

Deed in lieu on an investment property is possible. But whether your lender will accept a DIL on your investment property depends entirely on them. It is also upto your lender whether they will forgive the deficient amount arising out of the DIL. But generally it is forgiven in a DIL. The amount forgiven is taxable. But you can avail tax benefits under the Mortgage Forgiveness Debt Relief Act.

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