Posted: Sat Nov 07, 2009 5:27 am Post subject: Deed In Lieu
My story: Worked for over 30 years (I'm 55/woman) and now unemployed. I can't afford my mortgage. Mortgage Balance of $185,000.00. Apprasied last year @ $218,000.00 but now I'm told it will only sell for about $170,000.00. I've contacted the bank for a "deed in lieu" and the process has started. But now my concerns. I took out my 401K to pay off existing debts so I could muddle thru until I found another job and to keep the house. No luck in employment. I now owe the IRS over $15,000.00 in penatlies for early withdrawl. With the deed in lieu am I going to have to pay MORE in taxes/penalties when I give the house back. I have NO more money and unemployment is barely making my basic needs. Advise? _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
If the lender accepts your deed in lieu request, then your deficient balance would be forgiven. You will not have to pay the balance amount to your lender. Though the dues are forgiven, depending upon your state laws, you may not have to pay any taxes for it. _________________ Procrastination is the enemy of your financial sucess
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