Posted on: 08th Sep, 2010 04:38 pm
i have a rental with positive equity, negative cashflow potentially endangering my small reserve fund and possible even my own home (same lender). loan is a recource loan.
a helpful answer suggested i attempt to convince the bank to give me a "deed in lieu of foreclosure". why can't i just send them the keys? thanks
a helpful answer suggested i attempt to convince the bank to give me a "deed in lieu of foreclosure". why can't i just send them the keys? thanks
Hi ae6nn!
Welcome to forums!
If you just send the keys to the lender, then he would foreclose the property. As your loan is a recourse one, the lender will be able to come after you for the deficient balance resulting from the property sale. However, in case of a deed in lieu of foreclosure, you won't be liable for paying the balance dues resulting from the property sale.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If you just send the keys to the lender, then he would foreclose the property. As your loan is a recourse one, the lender will be able to come after you for the deficient balance resulting from the property sale. However, in case of a deed in lieu of foreclosure, you won't be liable for paying the balance dues resulting from the property sale.
Feel free to ask if you've further queries.
Sussane
I understand that since I have a reserve and they own my other home that it would be very difficult to get a deed in lieu. Is that right?
Hi ae!
Welcome to forums!
It is true that unless you have a financial hardship, the lender will not be ready for a deed in lieu of foreclosure.
Sussane
Welcome to forums!
It is true that unless you have a financial hardship, the lender will not be ready for a deed in lieu of foreclosure.
Sussane