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wendyhirsh
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0.10 Dollars($)
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 Posted: Tue Aug 22, 2006 5:41 pm Post subject: deed in lieu |
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We bought a house a year ago and had to rent the house we were in because of a 2 year penalty. Now the time has come to sell the house and we are looking at getting a high interest loan minimum of $7000 to $20,000 to sell it because we got ourselves in a bad loan. We do not have that kind of money in order to sell it. Is it more logical to do a deed in liue instead of 15 year high interest loan just to sell the house? Thank you, Wendy
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 sara
Joined: 05 Jul 2006
Posts: 1206
Location: New Brunswick, New Jersey
223.95 Dollars($)
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| Posted: Tue Aug 22, 2006 8:49 pm Post subject: RE: Is deed in lieu the only option? |
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Hi Wendy,
I think it is better if you do the deed in lieu. But before that you should have made arrangements so that you can stay somewhere else. The deed in lieu will help you avoid the high interest rate loan.
Know more on Deed-In-Lieu before you go for it.
Thanks,
Sara. |
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Ethan.C
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0.10 Dollars($)
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| Posted: Tue Aug 22, 2006 9:48 pm Post subject: |
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| Wendy, there's a lot of risk if you have already a bad loan and you want to get another just to sell. It's confusing - do you really want a loan to sell or may be you want to buy a new home and that's why you need a loan? or do you need to pay off the previous loan? |
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Wendy
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0.10 Dollars($)
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| Posted: Wed Aug 23, 2006 6:31 pm Post subject: response |
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Ethan & Sara,
Thank you for your comments. We bought another house and we could not sell the one we moved out of because of the penalty that's why we rented it. But now, we need to seel if b/c the interest rate is jumping up to 14%. So, we would need to get a second mortgage with a high interest rate to take out $15,000 in order to sell (comission etc.). Does that make sense? So, I'm taking it would be better to do a deed in lieu? How bad is is for our credit? And the renters are moving out October1 so should we stop paying mortgage on it? I can't make 2 mortgage payments beginning October. Thank you so much for your help! |
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sara
Joined: 05 Jul 2006
Posts: 1206
Location: New Brunswick, New Jersey
223.95 Dollars($)
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| Posted: Wed Aug 23, 2006 8:33 pm Post subject: RE: Second mortgage or deed-in-lieu? |
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Hi Wendy,
A deed-in-lieu does not have that negative affect as a foreclosure. But it does affect your credit to some extent. I was concerned about the high rate second mortgage and that is why I suggested it. However, if you feel you can cover up the payments on the second loan in time, then only go for it.
Thanks,
Sara. |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1482
Location: florida
250.36 Dollars($)
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| Posted: Wed Aug 23, 2006 8:48 pm Post subject: RE: Funds to sell property |
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Hi Wendy,
| Quote: | | Does that make sense? So, I'm taking it would be better to do a deed in lieu? How bad is is for our credit? |
I feel there is a way to get out of this problem. To me, a deed in lieu looks to be the last option to consider. If you can somehow make a few payments on the second mortgage and then refinance the loan at a lower rate, then I think you can get through this situation.
Intially it may be troublesome to make monthly payments on the second loan. But if you can sell the property quickly then using the sale proceeds, you can pay for the second loan and then with the passage of time, you can refinance at a lower rate.
Thanks,
Caron. |
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