What is my financial & Legal responsibility?

vlyoo · Joined: 07 Aug 2009 Posts: 1 1.00 Dollars($)

I have a house I live in that is worth about 60% of what I owe on it. Thanks economy! I closed my home business then went back to working as an employee and now this is too much house. I have worked out a Loan Modification that will start on 9-9-09 after being delinquent for 5-6 months. Even with the loan modification I am nearly in the red every month. My work hours have been cut so there is no over time. This leaves me approximately $50.00 extra per. Month above living expenses (monthly bills). I have found a rental house for much less that I can move into tomorrow. What will happen if I do a Deed in Lieu, Foreclosure or Bankruptcy after I move into the rental house? Or what would I qualify for? Are there any negative legal actions that can happen to me if I do? I live in New Carlisle, Ohio 45344

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

If you do deed in lieu or foreclosure you will surely loose your house, ut also good amoutn of credit. But You already said you were behind on yoru payment

Legally with deed in lieu the bank will firgive the deficient amount. But with foreclosure they may come after you for that money and it is true for a short sale

But you may be loose all this, but you will have peace of mind atelast if you let this property go and think of buyign again in few years, when your finaces are in good shape

Niicss · Posted: Sat Aug 08, 2009 4:16 am Post subject:

In my opinion, a deed in lieu is a better option for you if you do not want to save your property. A deed in lieu of foreclosure will lower your score by 200-250 points. Thus, you won't be able to get a mortgage immediately after it. You'll have to wait for 2-3 years in order to get a mortgage. You can stay in the rented property for the time being and build up your credit. Then, you can apply for a mortgage to buy your property.

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