Posted on: 05th Jun, 2009 04:09 pm
New construction, contractor used all money without finishing. We don't have funds to finish project. Been trying to sell no takers. Deliquent over 1 year.
hi jdmorris,
a deed in lieu will have an almost similar effect on your credit as a foreclosure would do. it will drop your credit by almost 250 points. however, the deficient amount arising out of the sale of the house is likely to be forgiven by the lender in a deed in lieu. thus, there are no chances of the lender suing you for the deficient amount and obtaining a judgment against you. you should talk with the loss mitigation department of the mortgage company regarding this. they should be able to help you with the deed in lieu.
a deed in lieu will have an almost similar effect on your credit as a foreclosure would do. it will drop your credit by almost 250 points. however, the deficient amount arising out of the sale of the house is likely to be forgiven by the lender in a deed in lieu. thus, there are no chances of the lender suing you for the deficient amount and obtaining a judgment against you. you should talk with the loss mitigation department of the mortgage company regarding this. they should be able to help you with the deed in lieu.
A deed in lieu is a better option as compare to foreclosure.
You can qualify if:
1) you are in default and don't qualify for any of the other options;
2) your attempts at selling the house before foreclosure were unsuccessful;
3) you don't have another FHA mortgage in default.
You can qualify if:
1) you are in default and don't qualify for any of the other options;
2) your attempts at selling the house before foreclosure were unsuccessful;
3) you don't have another FHA mortgage in default.
jdmorris721
Welcoemto the forum.
Sorry to hear that you are in this situation.
If you are already deliquent for an year, probably your credit score has taken a toll for that.
Howmuch you will go down from there depends on where it is now.
Good luck and feel free to ask.
Welcoemto the forum.
Sorry to hear that you are in this situation.
If you are already deliquent for an year, probably your credit score has taken a toll for that.
Howmuch you will go down from there depends on where it is now.
Good luck and feel free to ask.