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 treasurelife
Joined: 04 Jan 2009
Posts: 1
1.42 Dollars($)
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 Posted: Sun Jan 04, 2009 10:45 am Post subject: Will it be to my advantage to pursue a deed in lieu once I h |
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Will it be to my advantage to pursue a deed in lieu once I have defaulted my first payment...I do have a refinanced loan (interest only) and was needing to default this month. Will it be to my advantage to pursue a deed in lieu once I have defaulted my first payment?
I owe $178,000 and I believe the fair market value is around $70,000.
1bdrm condo in Concord,ca ...or should I borrow a mortgage payment from my family to keep from defaulting before I start requesting a deed in lieu.
I want to be successful with deed in lieu if that is my best choice or is a short sale a better approach for me? |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Sun Jan 04, 2009 9:22 pm Post subject: |
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Hi treasurelife!
Welcome to forums!
Whether you apply for a short sale or a deed in lieu, the lender will not accept it until you have defaulted on the loan payments. But again, if you intentionally stop paying the mortgage dues and apply for a deed in lieu or a short sale, you will have a tough time convincing the lender.
Deed in lieu and short sale both will affect your credit. A deed in lieu will lower your credit score by 250 points whereas a short sale will lower your credit by 75-100 points. However in a deed in lieu, the deficient amount is forgiven. In case of short sale, you will have to pay the deficient amount. So if you want to save your credit score, you should then apply for a short sale.
Feel free to ask if you have further queries.
Sussane |
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debora harrigan
Guest
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| Posted: Sun Jan 04, 2009 10:03 pm Post subject: deed in lieu |
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| I would like to continue research with you however keep in mind I've been getting money gifts from family members to keep my loan paid for the last 2 months. I am in a loan/tax/condo dues that is 50% of my take home.....how much in debt do I need to be to convince the lender I need to do a friendly deed in lieu? |
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Niicss
Joined: 03 Oct 2005
Posts: 2620
Location: New Jersey
409.63 Dollars($)
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| Posted: Mon Jan 05, 2009 2:03 am Post subject: |
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Hi debora harrigan
A lender will consider a deed in lieu if you are at least a month late on your mortgage payments. However, you will also have to convince the lender about the hardship you are facing while paying the mortgage dues. If the lender is convinced, then he will accept a deed in lieu. I don't think you will need a particular amount of debt in your property to convince the lender for a deed in lieu.
Thanks.
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Good is the Enemy of Great. |
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