Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Deed in lieu: Helps you stay away from foreclosure

when should you do a deed in lieu instead of foreclosure? On my foreclosure "all decrepencies are waived" would this be true with a deed in lieu?

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Deborah,

Usually the owner of a property submits the deed in lieu when he is unable to meet his obligations and the property equity has gone to zero.

When you find that you have little or no equity in your property and that refinancing or a private sale is not possible, you can go for an estate deed in lieu in order to [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid foreclosure[/url] which is time consuming and troublesome.

An estate deed in lieu of foreclosure helps to prevent your credit rating from being severely damaged by a foreclosure. But you should remember one thing. You may have to pay conveyance taxes if you opt for a deed in lieu of foreclosure.

All discrepancies may not be waived in a deed in lieu. In a foreclosure all the junior liens are wiped off whereas in a deed in lieu the junior liens remain on the property.

Hope this information will help you.

Regards,
Blue

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I lost my job just after refinancing at 100% of my home value, with a 2-year pre-payment penalty. I was ready to go into foreclosure, as I found another job out of state. The bank offered a deed in lieu. Is there a down side to this? Ther are no other liens on the house. I cannot make payments.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Art G,

Welcome to MortgageFit Forums.

I understand this is a tough decision to take. But since you have got a job now it is required that the matter is settled early.

Deed in lieu will leave some effects in your credit report but it favorable compared to a foreclosure. And you can rebuild credit after deed in lieu of foreclosure.

Since you got a job out of state so I think you will not want to lose much time. Also as per your statement you don't have the money to pay off currently.

In that case deed in lieu is a good option. You may go ahead with that, but be sure to check that you are relieved off all the liabilities.
God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my husband and I bought a house in Oct 2001. I was layed off in nov of 2001. Now my husband as lost his job and has found another one in a different state but it pays a lot less. The strain of paying both the mortgage and for an apatment for my husband is getting to be too much. We have had our house on the market since august with not even an offer. our real estate agent as told us of an option "deed in lieu of foreclosure". what does that mean? Does it apply to me? Is it a good option? what are the draw backs?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Michelle,

Welcome to MortgageFit Forums.

I can understand the difficulties that you are facing in this situation. But time does not stay the same way and will change soon for you.

Your husband's condition will improve one day with caring wife like you to support him.

Through deed in lieu process, the borrower can transfer the ownership rights of the property to the lender to avoid foreclosure. It is suitable generally when the private sale of the property is not possible and when you do not want to spend more time in a foreclosure.

You can get rid of your mortgage which you don't want to keep now. I think it suits your situation. Involve an attorney in the matter so that you are assured of clearance from the mortgage through the deed.

Actually deed in lieu can prevent severe damages of your credit done by a foreclosure. So it can be a good option for you under this condition.

Time will improve Michelle for both of you. I strongly believe that. I have seen people in similar situations come out of the trouble soon.

Feel free to ask us if you have any more doubts.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In a joint ownership if one or the other party is unable to pay its half can a Deed In Leiu still be used.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

As far as I have heard, if one party cannot pay its half, then the deed-in-lieu of foreclosure can be applied only on his interest on the property.

Thanks,
Jerry.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi
My house was for sale and under contract and the person backed out. I know have to homes I have been making the payments is this an option for me. It is getting very hard to make the payments. How bad how does a deed in lieu of foreclosure affect credit?

[color=red:510f1a39f6][size=9:510f1a39f6][E-mail edited by Jessica, as per forum rules. Thanks.][/color:510f1a39f6][/size:510f1a39f6]

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Yep, sometimes they backed out.

Sell at FSBO you will sell faster and there most likely you will get more competitive price as paying big commissions to the agents can be bypassed. These agents care more about their fast money not their client.

But they have to refund the buyer's earnest deposit, though some legal actions can be taken against them but rarely are the buyer's going to tie up their lives to pursue a lawsuit.

Niicss

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Peggy,

If you want to sell it on your own then FSBO is a good option as stated by Niicss. But sometimes it becomes difficult to sell if you are not a professional. So, taking a professional can take away headache out of you.

But be assured to choose the right agent to escape harassment. Consult with your friends and neighbors for recommendations. Shop around to pick up the most suitable one amongst the many available.

A proper agent will help you to establish a fair price for your home. He will help you negotiate with the buyers and guide you to sell without much trouble.

If you are wind up with two mortgages on two homes, you can opt for a bridge loan to make the double payments, although you need to be aware of the rates that is offered and should shop around for the best rate.

So far you making regular payments on your mortgages, your credit record is not going to be affected, but in case of any failure it is definitely going to have a negative impact.

Thanks,
Murphy

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if the bank agrees to a deed and lieu they are telling that its over they take back the house and dont come back to me for the difference is that true?? also what if the house was sold before or after the deed and lieu do i have to pay the difference? Where can I get a deed in lieu of foreclosure form?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Mike,

Welcome to MortgageFit Forums.

Paying the difference between the sale price and the mortgage will depend on the negations you have had with the bank. Sometimes banks and lenders do allow this. This is known as short sale.

So if your bank has agreed to a deed in lieu and then they get a sale price much lower than the unpaid loan balance, they do have th right to charge the remaining mortgage payments. But yes, if you can negotiate with them tactfully, then you may be allowed to get away with the balance.

Often a short sale can be more complicated if the loan has been sold in the secondary market. Because then the lender needs to take permission from Freddie-Mac, one of the two major secondary market players.

Thanks,
Caron

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is a deed in lieu less negative than a foreclosure in Michigan, and how long does it take for a foreclosure. We have had money problems and can't catch up the mortgage payments and a foreclosure is close. We just are soooo tired of the hassle and won't some peace of mind. What do we do? Which road do we take?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

I can understand what you are going through and that too when the celebrations of the New Year are still on. But do not worry. I can assure you that you will be able to get out of this situation; the only thing is that it will take some time till you can come out of it.

Regarding the deed-in-lieu, I would say that in general a foreclosure has a more negative impact than a deed-in-lieu. This is because in the deed-in-lieu, you are giving up all your interest in the property to free yourself from the obligation of paying off the mortgage.

In Michigan, generally judicial foreclosure is conducted and the process takes about 147 days. But I would suggest that instead of foreclosure, you better go for a deed-in-lieu. This will save your credit report from being damaged to that extent as in a foreclosure.

But before you proceed, you should definitely consult a mortgage attorney to guide you further.

Hope that you get over this problem soon and enjoy the New Year.

Regards,
Caron.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My husband and I have had our home on the market for almost 2 years w/our current agent and a year with one prior to him. We had it near sold two separate time but both backed out at the last minute. In that time I had lost my job. We have stayed current on our payments until this month. We do not have the money to make our payment. I have been in contact with our lender since July of last year to keep them up-to-date on our situation and it's near impossible to get straight answers. We do have good credit but have fallen vicitm to some very difficult times. We want to be rid of this house. We have run ads and have had open houses our selves (with an agreement from our realtor) and this things just isn't selling. Can you give me specific details on how to go about the Deed in Lieu. We want to get this taken care of ASAP and done the right way. Should we look to a lawyer to make the calls? Thank you for your time.
Sincerely,
Jenny K.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jenny,

Welcome to MortgageFit Forums.

This is a tough time you arte going through and I feel sorry for that but I strongly believe that you are going to come out of the situation soon.

Going through the details you provided, I don't think you will face much problem with the deed in lieu as you are current on your mortgage. So, you are in good view of the lender.

You need to talk to your lender as his acceptance is required in the process foe deed in lieu.

He is going to give you the process details and also may suggest if there is any alternative way possible.

It is better to involve an attorney in the process to be safe.

Feel free to ask if you have any more doubts. We shall be happy to help you and stand in support of you.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We are in the middle of filling for bankruptcy. I was just told of a died in lieu. What would be better. What is better for for our credit when looking for a loan later. Thank you, God bless.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi William,

Bankruptcy has serious negative effects on your credit history and score.

A deed-in-lieu requires some condition to be fulfilled and requires the lender's acceptance. They have already discussed under this thread.

Deed-in-lieu is preferable only if you have a place to stay. Both will have negative effects on your score but the effect of bankruptcy may be more.

[url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 bankruptcy[/url] and deed-in-lieu both stays on your credit report for 7 years and chapter 10 stays for 10 years.

May be deed-in-lieu look slightly better in terms of getting a loan in future but lenders more often doesn't accept a deed-in-lieu due to title issues or the presence of other loans against the property.

James

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have an investment property that we have been unable to pay on for 4 months, and do not anticipate being able to pay on in the future. Our lender is in process of getting approval to do a deed in lieu, but in our negotiations they are asking if we would be willing to sign a promissary note to repay $5000. When I questioned where they got that figure from they said that was the minimum our lender would accept. Is this pretty standard or are they trying to take me for a ride?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

As far as I know, HUD allows the lender to charge $2,000 for a deed-in-lieu. These funds are utilized to pay off junior liens so that the clearance on the title in obtained. The funds may also be charged to meet the requirements in Mortgagee Letter upon vacating the property.

You can ask for the basis on which they are charging the money and may get it checked with a real estate attorney.

James

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a rental property, but rent payments don't cover my mortgage payments plus equity loan. I know if I try to give the property back to the bank, I will still have to make payments for equity loan. there is not enough equity to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] as an investment property. It's hard to sell the property for the price, which would at least pay off all the debts. What to do? We can't handle additional payments anymore. Thank you

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Svetlana,

Why don't to discuss the matter wit your bank. When you say that you want to sell the property at least to get rid off the debts, that means that you are thinking of making any profits from the sale.

I shall suggest to talk about your financial condition with the bank and see if they agree to negotiate. You can request them for a deed-in-lieu under this condition.

Regards,
Blue

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Bankruptcy may be considered as another option under this condition but you should think of it only when all other options fail for you.

This may have serious impact on your credit score and history, but you can go for it if nothing positive comes out from all other efforts.

Angel

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i went bankrupt and im trying to get back on my feet but my house payment is killing me. i have been in foreclosure for 6 months now and i dont know what to do im upside down.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jeff,

Welcome to MortgageFit Forums.

I can understand your problems. These are difficult periods which come and go in everyone's life. So, keep your cool and don't get so disheartened. Things will definitely improve for you.

It's already a good sign that you are trying to recover from your problems. Now have you got any equity on your house so that you can get a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] or may refinance the loan to get some easier terms?

You may talk to your lender and check whether you can get a solution from them. Lenders generally try to find out an alternative form for the payments. A deed-in-lieu may also be asked for if you don't want to keep the house further.

Just check what they suggest and you can always back here with the result so that we can discuss on it further and find out some more ways to recover.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

blue's picture
blue | Joined: October 21, 2005 09:17 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Jeff,

Talk to your lender as Samantha suggested. Definitely they will come out with a solution if you can explain your intention and your financial condition clearly.

With my personal experience I can assure you that generally lenders don't like to go into a foreclosure as it kills a lot of time and money. :) Best of Luck.

Blue

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jeff,

Deed-in-lieu can be a good option if all others fail to avoid a foreclosure especially since you in a process to recover from the bankruptcy and will not like to ruin your credit further.

Though credit score is affected with a deed-in-lieu but, possibly it is less severe than a foreclosure.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I owned a duplex that used to be my homestead but now I have the property rented for $2000 that covers 95% of my first mortgage payment without property tax and insurance. I also have a home equity line that I took out to fix the property I am living now. I am face with the situtation that I cannot keep paying for the equity line plus insurance and property tax. I was thinking to quit claim the property to my sister and try to to negotiate the equity line to be paid off for much less because according to the appraiser in the area I cannot sale the property for what I owed between the two mortgage. What to do, what is the best thing to do.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Quit claiming the property to your sister will not have any effect on your mortgage payments.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

One option is that you pay off your home equity line balance with a cash-out refinance of the primary mortgage you have.

Thanks

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

colin's picture
colin | Joined: June 30, 2006 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Let me give you an example to explain what Bolton is trying to mean,

Suppose your home equity line balance is at $50,000 and the primary mortgage is $250,000. So, if you refinance your primary mortgage for $300,000, you get excess cash of $50,000 from which you can pay off the line of credit.

Thanks

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jr,

I think Colin has made it quite clear. Since you are thinking of paying down the balance of the equity line of credit, you can consider refinancing the existing first mortgage. By this I mean that you take a new loan against the duplex and pay off the existing loan against it. The amount of the new loan should exceed the balance of the existing loan. Now, after paying off the first loan, you can use the extra cash to repay the equity line of credit.

Thanks,

Caron.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I CLOSED ON A HOUSE OCT 20 AND OCT 24 WAS INFORMED MY JOB IS TRANSFERRED TO A DIFFERENT STATE. HOW CAN I ELIMINATE THIS MORTGATE AND GIVE UP THIS HOUSE WITHOUT PENALTY SINCE I CANNOT OCCUPY IT NOW PLEASE?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If there is no prepayment penalty then you can sell it off and pay the lender. You check your mortgage note as it is mentioned in it. Also talk with the lender and explain the situation you are in as it’s just been a week you have closed on the mortgage.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As much as I know, you cannot cancel a home loan taken for buying your home. There are rare instances when the truth in lending act can help to cancel such loan. Technically, it is not possible to cancel a mortgage. There are a few rare instances when the Truth In Lending Act can work to cancel the loan, so it is better to pay it off and then move away.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Our house has been on the market for a while and haven't gotten any bites yet. My husband is disabled and he can't survive another excruciating winter in New Mexico. We want to move to Nevada where it is much warmer. My question is we want to buy another home but we can't afford two mortgages while one house is for sale we have a first and second on our first home. We are wondering if and when to ask our mortgage company for a deed in leui, how long does it take and what happens to the [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url]? Is a deed in leui a better option than just letting our house go int forclosure?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Try to avoid foreclosure, as it has damaging affect on your credit and then in Nevada you will have difficulty purchasing your new home. If the house is not selling deed-in-lieu will be the option to choose.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Millo,

Instead of thinking about doing a deed-in-lieu of foreclosure you can also select an option called the Lease Purchase Option, in which you will rent a house in Nevada with the option for you to purchase that house during the term of the lease you will take the house.

What it will do is to allow you some more time to sell the previous home and be able to pay off both the mortgages.

A deed-in-lieu would have been a good option if there was only one mortgage on the house and not two. As now the 1st lender after the deed-in-lieu of foreclosure will take over the property with a lien of the second mortgage on it and might not agree for a deed-in-lieu for that reason.

Thanks
James

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

It's disheartening to hear about your husband's illness. I must say you are a strong lady struggling to give your husband as much relief as possible. It's true that in your situation, it is indeed difficult to manage two mortgages and at the same time make arrangements for financing the new home.

Considering your situation, you can go for a deed-in-lieu. In case there is only one mortgage company, the company will get the title to the property and sell it to get back the outstanding loan balances. If the company thinks that it can recover the total debt amount by doing the deed in lieu, it will not go for foreclosure, as there are a lot of costs involved in the process.

However, if there are two lenders, then you will have to contact the first lender for the deed-in-lieu, as he has primary rights on the house. The first lender will in turn contact the second lender and other lien holders, if any on your property and deal with them in order to clear all the liens. The first lender will try his level best to sell off the property at a price which will help him to pay all dues and clear all liens against the property.

Thanks

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A month after purchasing a home, my husband was hit w/a pay cut and his company would no longer pay for his dependents (me and the kids) health care. We refinaced our home to stay afloat and then 2 years later, my husband found an incredible job ... out of state.

We spent 9 months apart while trying to sell our home, my husband commuting back to hs family when he could. The house and neighborhood of our dreams finally became available at a very good price this past summer. So prayed, purchased the home, and relocated.

Now we have two mortgage payments and our first home has been on the market for over a year and has yet to sell or rent. We are current on all our payments as of now but are rapidly loosing money. Is a 'Deed in lieu of foreclosure' an option on an 80/20 loan (two different lenders) and a property that has monthly Home Owners Association dues? Just trying to look at all options, we don't want to have to foreclose or file bankruptcy. Thank you so much for your time and responses.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:9178ec8267]Is a 'Deed in lieu of foreclosure' an option on an 80/20 loan (two different lenders)[/quote:9178ec8267]
Deed in lieu of foreclosure will be possible if the first lender agrees to take over the house with the lien of second mortgage existing on the house.

If possible try to do cash-out [url=http://www.mortgagefit.com/refinance.html]refinance[/url] of the first mortgage and pay off the second mortgage from the money you get out of the refinance. You are still as of yet regular with the mortgage payments, so this might be done.

Lary Ebel

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Annon,

A deed in lieu can be an option to get rid of the first loan provided the lender agrees to take over the lien placed by the second loan. The first lender has to then pay off the second loan and thus clear the lien. Also, the lender has to take responsibility of paying for the monthly Homeowners Association dues.

However, I shall suggest that you don't think of deed- in-lieu right now. Rather, you should try to find out how you are losing money. By saying this, I mean that you need to think as to where you are spending more, how you can minimize your expenses, whether or not you plan your budget prior to spending. I think you should emphasize on these areas, as you are still current on your loan; so why go for deed-in-lieu and get a negative mark on your credit report? Give this a second thought and then if you feel you need any related advice or if there is option that you would like to discuss with this community, you are most welcome.

God bless you.

Samantha

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for your thoughts and suggestions! We've just been hit hard with large unexpected expenses, relocation, and more unexpected expenses these past few years and it has been draining on our resources. As soon as our other house sells, and we no longer have the burden of two mortgages, we will be able to start saving money again. Just wanted to look at options in case our account gets too close to $0.00! Would rather be prepared ahead of time rather than being backed in a corner. :) Thanks again!

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

helping_user's picture
helping_user | Joined: March 31, 2006 03:39 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Annon,

Welcome back.

I have gone through your previous posts so that I could understand your situation. Anyway, it's good to know that you"ll start saving within a short time. Savings are indeed very important as in our daily life we may require immediate cash any moment. And, we can save more only when we know roughly how much we are to spend on our daily expenses and other areas. For that, I think, one needs to budget and control overspending.

Proper budgeting will help to minimize unnecessary expenses and maintain a good balance on your account. Otherwise, getting close to $0 in your account isn't a good sign. The bank may ask for a penalty and close the account if it's actually zero. So, the best thing to be on the safe side and that's why you can do a budgeting of your expenses on various items.

Earlier this community has started providing Tips on How to Save through the Budgeting forums. You can go through the discussion and in case you have any query regarding budgeting, you can come up with it in the Budgeting forums. Also, you may use the Budgeting Tool which is a user friendly software developed by this community and can be easily downloaded.

Thanks

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I own my home with my daughter. We have tried to sell for the last 2 years with no success. We have refinanced several times for a lower interest rate. we also have a betterment of $27,000 with the town for a new septic system. With the market the way it is we have no equity left and are thinking of doing a Deed in Lieu of Foreclosure. I was laid off and am now collecting social security. My daughter has a good job and our credit is good. We need to get on with our lives. The neighborhood has deterioated with a big above ground pool very close to our propertyon lone side and our home overlooks a very messy and unattractive neighbors home below. We want out. It the DLF a good idea?

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Colton,

Welcome to the forums.

Since you couldn't sell property in the past 2 years and have also refinance quite a number of times, I believe you should go for deed-in-lieu provided you feel that you cannot pay off the loan. But have a talk with the lender on this regard.

Thanks,

Sara

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

From my experience most banks
like for the property to be on the market and attempt to do a short sale prior to a deed in lieu. The process is generally 90 days. That is why it is important that you weigh your options and act quickly. It depends on what state you live in on how fast the sheriff sale date is set.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

[quote:492a8474bb]From my experience most banks
like for the property to be on the market and attempt to do a short sale prior to a deed in lieu.[/quote:492a8474bb]
I agree with you. They do prefer a short sale instead of a DIL as it means fast cash back into their coffers. A dead property which is hard to sell is the last thing the lender would like to have in his portfolio.

Derek Powazek

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a question

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I've read the entire thread but I'm still confused. Do I just call the bank and ask for a deed in lieu? My husband are I are both 24 and thought life was going great, but buying this house has been the worst mistake we ever made. We're broke, the furnace is broke(winter in MI) and the neighrborhood has dratically declined.

We haven't been able to pay since Nov. 2006.
I currently have a mortgage with EMC that we can no longer pay because of my husband's multiple sclerosis. I've called various investors to try to sell the house but no one was interested. We owe about 71,000 on the loan, however house in my area comparable to mine are only selling for like 65,000. Before you do a deed in lieu do you have to try to prove you tried to sell the house, because absolutely no on is interested in buying our house and we just want out of the house like yesterday. The hosue is in my husbands name only. Is there a form I can download online I can mail to them.

Like | Dislike | Share | Posted: Thu, 02/04/2016 - 23:50 | Post subject:

Page loaded in 0.139 seconds.