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.

How Deed in lieu of foreclosure affects credit score

If you're not able to pay your mortgage and you can't sell the home or get a work out plan, a deed in lieu of foreclosure is your third option. This option allows you to transfer the property to your lender in exchange for being released from your mortgage.

Does deed in lieu of foreclosure affect credit score?

When you go for deed in lieu of foreclosure, it affects your credit score. Your score will drop by 250 points or so and will stay on your credit report for 7 years. After 7 years, you can have the deed in lieu removed from your credit report and start to rebuild your credit. At the end of the 7th year, you can request the bureaus to remove it from the report.

How long after deed in lieu can you buy home?

Because a deed in lieu has a negative impact on your credit, lenders won't offer you a mortgage for the first 2-3 years. In the meantime, if you try and rebuild your credit the chances are that you may be approved for a loan after the 2-3 years has expired. After that you can buy a new home.
Related Forum Discussions:

My wife and I along w/another couple bought a 2 family with an agreement that one resident would buy the property in one year, he defaulted and left us with a ton of damage and bills. Long story short we ended up doing a deed in lieu on the property. Our wives were the primary lendees on the mortgage as a result we are seeing a major hit on her credit score taking it down to a 660 or so. Lenders can't use her on a loan if we want to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] or anything because they say the hit disqualifies her. We did not enter this deal to go into the hole, we worked real hard for many years to keep our credit very very good and this one property seems to have wrecked us, we don't have a ton of money, we work hard and have a small home of our own that we would like to refinance, I am getting no's from lenders. I really need some help and I feel hopeless at this point. I just don't want to see all that my wife and I are working for shot because of one bad deal that we only entered into because one tenant wanted to buy the place and take care of it and then we got stuck with it. It took thousands out of our pockets before the deed in lieu. As I said other than that we have had excellent credit, mine is over 740-750. Please offer any advice, it is truly truly appeciated. I feel that we are good hard working people and we just don't want to feel hopeless.thank you so much, Matt Long

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

Hi Buffy,

You can apply for a deed in lieu of foreclosure in order to get rid of the property. A deed in lieu of foreclosure will have a negative affect on your credit report and lower your scores by 250 points, you won't be liable for paying the deficient balance resulting from the sale of the property.

Thanks

Like | Dislike | Share | Posted: Sun, 09/25/2011 - 23:47

yenycota99's picture
yenycota99 | Joined: November 22, 2009 04:25 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

have a rental property in FL that is vacant for last 3 months. Cant affort to make those payments, cant sell if for Iwhat I bought it for. It hasnt been a profit/investment for the past 2 years. What can I do? . missed 2 payments already and the bank is moving slow in solutions. :cry:

Like | Dislike | Share | Posted: Sun, 11/22/2009 - 16:47 | Post subject:

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

i am two month behind on mortgage dont get enough income to mantain i am always falling behind what should i do

Like | Dislike | Share | Posted: Mon, 05/10/2010 - 09:23 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi enzopac!

Welcome to forums!

If your property is free and clear, then you can list it in the market and try to sell it off. However, if you have a mortgage on the property, then walking away from the property will lead to foreclosure and you will be liable for paying off the deficient balance resulting from the sale of the property.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 08/01/2011 - 22:42

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

Hi Roberta,

Yes, in one way you gain by avoiding a foreclosure as that can have more severe effects on your credit. But deed-in-lieu does appear on your credit report and next time you approach a lender he is going to take that into consideration.

The lender agrees to a deed-in-lieu only if he finds that you don't have any other options to repay or you are compelled to change the house as a result of a job transfer.

Also he may agree to avoid the time and money associated with a foreclosure.

Like | Dislike | Share | Posted: Mon, 07/17/2006 - 17:20

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

Sussane,

Thank you for your reply and advice. The state I live in is SC. It is my understanding that, in a full foreclosure, the bank may or may not go after a judgment for deficiency on my loan. If there is "no deficiency," then a 1099c will be issued. If there IS a deficency, then there will not be a 1099c issued. From what a real estate lawyer has told me in SC, it's really a crap shoot because it will depending upon what lawyer is doing the negotiating. Sometimes one is issued, sometimes not. At any rate, I'm thinking the best route to go is to avoid a 1099c. I may have a 50/50 chance there at least. And, if a 1099c IS issued, I just have to prove insolvency at the time of the default on the loan. I'm learning all sorts of things in this process. The scariest thing is that there doesn't appear to be any rhyme or reason to one's outcome. I guess I'll wait and see since I'm now in the throes of foreclosure and have been going on the advice of a bankruptcy AND real estate attorney in SC. I hope this helps SOMEONE and saves them all the trouble of researching through the maize of information out there! -Rose

Like | Dislike | Share | Posted: Fri, 09/23/2011 - 11:01

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

So really the only one who benefits from a deed in lieu is the mortgage co. because it doesn't cost them like it would for a foreclosure! Because in a foreclosure you still have to wait for three years to get a loan again.

Like | Dislike | Share | Posted: Mon, 07/17/2006 - 17:13 | Post subject:

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

We are moving out of state and have contacted our mortgage company regarding my husband's job being transferred to a different state. They have told us to put the house up for sale for three months and then we can do a DILF. We also have a [url=http://www.mortgagefit.com/second-mortgage.html]second mortgage[/url] as well. We have notified them and were told that they woul dlet us out of the mortgage obligation with DILF. Will this affect our credit twice? Will we get hit with two 250 pt deductions on each of our credit since my husbands and my name is on both mortgages? I have read that some people's credit was hit by 60 pts doing DILF. Is tis a number set for everyone? The 250 points? Thanks! Leslie

Like | Dislike | Share | Posted: Sun, 03/27/2011 - 16:16 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi lorabea,

It is responsibility of the lender to report the deed in lieu of foreclosure to the credit bureaus.

Like | Dislike | Share | Posted: Thu, 06/16/2011 - 21:47

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi clp!

Welcome to forums!

The property may have sold off at a reduced value and thus that value is mentioned on the 1099c form. As the debt has been forgiven, the IRS will consider this as your income. However, if it is your primary residence, then you won't have to pay any taxes as per the Mortgage Debt Relief Act.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 02/07/2011 - 22:31

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

I am upside down in my mortage. I have a ARM 7.07 %. I messed up and got into the adjustable loan. I have an excellent payment history. As of September 1, my payment went up and with all the other obligations I am unable to handle. I tried to talk to mortagae company I make too much money to get any help from them. I am about to miss my 1st mortgage payment. With that said I do not plan to stay in the house actually I don't want to live there anymore it needs work and I don't and will not have the money to do it. What are my options?

Like | Dislike | Share | Posted: Sat, 09/24/2011 - 17:14 | Post subject:

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

Hi John,

As your name is mentioned on the note and the deed of trust, it is not mandatory for you to report the deed in lieu of foreclosure to the credit bureaus. Unless you report it to the credit bureaus, it won't affect your friend's credit.

Thanks

Like | Dislike | Share | Posted: Sun, 12/25/2011 - 23:13

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

The 7 years will be counted after the property is sold off by the bank in a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url] auction.

Like | Dislike | Share | Posted: Mon, 02/28/2011 - 02:35

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

I have a rental property and primary residence mortgages both held by BofA. Due to a change in income I will not be able to keep up on payments with the rental property. I am thinking foreclosure may be the easiest option versus a dee in lieu. I have a second mort. on the rental property and am concerned with the tax liability and second mort holder pursuing for owed funds. Can the second holder collect anything after forclosure on the property? I've heard the credit hit is the same for a forclosure and deed in lieu. any advice or comments would be great.

Like | Dislike | Share | Posted: Tue, 12/27/2011 - 21:45 | Post subject:

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

Hi,

A Deed-in-Lieu does get recorded in your credit report and acts as an evidence of the fact that the borrower has conveyed all his share in the property on being unable to pay off his mortgage. But a recording of this process doesn't have as negative an impact as a foreclosure.

Know more on Deed in Lieu from the information available on this topic.

Thanks,

Caron.

Like | Dislike | Share | Posted: Sun, 07/16/2006 - 22:56 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome shortcake,

After a deed in lieu of foreclosure, your credit will decrease by 250 points though you haven't missed the payments. Immediately after a deed in lieu of foreclosure, you may face issues in renting a place.

Like | Dislike | Share | Posted: Thu, 05/05/2011 - 21:47

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

I'm not understanding something! I thought if you did a deed in lieu of foreclosure that it didn't show up on your credit report. Most mortgages companys go straight for the credit report for a new mortgage.so what am I missing? Just call it dumb blonde syndrome! LOL

Like | Dislike | Share | Posted: Sun, 07/16/2006 - 22:43 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jonajcomo!

Welcome to forums!

If you want to get rid of the property, then a deed in lieu of foreclosure will be a good option for you. It will not only help you in getting rid of the property but you won't be liable for the deficient balance even. However, your credit score would go down by 250 points.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 05/28/2010 - 02:14

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

Does one hire an attorney in the state where the about to be foreclosed property resides? We are FL residents but the property about to be foreclosed on is a vacation home in NC. Also, when do you file for the deed in lieu of? We have tried to do a short sale with our bank for three months and had a buyer but it fell thru recently and now we have been sent a letter from a trustee corporation in NC that the bank has asked them to initiate foreclosure. Must we immediately try to start a deed in lieu of? We have been told it takes months/years on a foreclosure and we are still trying to get a short sale.

Like | Dislike | Share | Posted: Tue, 10/04/2011 - 13:26 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi gnatnoop!

Welcome to forums!

Anti-merger clause is a clause in a mortgage or deed of trust specifying that the senior or the primary lien holder will retain lien priority in the case of a merger.

You can negotiate with the lenders in order to get your request for a deed in lieu transaction accepted. However, if you do not feel confident, then you should contact an attorney and he will assist you in this regard.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 01/17/2011 - 21:54

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

Hi i have two house's one in KY and the other in AZ, my situation is my brother lives in AZ but due to medical reasons I'm moving him to KY. I owe more then what the house is worth in AZ, i have talked with my lender about doing a short sale do to medical reasons, they informed me that due to my perfect payment history i don't qualify, now if i missed payments, i could possibly be qualified, unless my finances show i can make the payments. WHAT , does this sound right help.

Like | Dislike | Share | Posted: Wed, 12/23/2009 - 20:12 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to the forums!

Unless the mortgage is in your name, the deed in lieu of foreclosure won't affect your credit. As far as I can understand, the reverse mortgage is in the name of your parents. So, even if you opt for deed in lieu of foreclosure, it won't affect you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 05/30/2013 - 00:39

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome myhotlx,

In most cases, it has been noticed that a deed in lieu of foreclosure lowers the credit by 250 points. However, I don't think it's worse than a foreclosure because in a deed in lieu you do not have to pay the deficient balance whereas in a foreclosure you're liable to pay it off.

Like | Dislike | Share | Posted: Wed, 11/25/2009 - 20:33

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

Hi Beka,

After a short sale or a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url], you need to wait for 2-3 years in order to get a new mortgage or a refinance. If you want to save the property, then loan modification will be a good option for you.

Thanks

Like | Dislike | Share | Posted: Tue, 04/02/2013 - 23:07

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

I HAVE THREE INVESTMENT PROPRTIES. ALL THREE HAVE BEEN TAKEN A BEATEN FROM TENENTS & CRIME. I HAVE SANK OVER 30,000 INTO THE PROPERTIES IN THE LAST THREE YEARS TRING TO KEEP THEM RENTED. THEY ARE ALL VACANT. TRIED FOR 3 MONTHS TO SELL NO OFFERS. HOW DO I PROCEED WITH A DEED IN LIEU.

Like | Dislike | Share | Posted: Tue, 11/10/2009 - 13:37 | Post subject:

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

which one is worse for credit ? in lieu or short sell ? also , can i make a deal with bank when doing an in lieu for credit reports , like can i ask them not to report in order for me to accept in lieu ??

Like | Dislike | Share | Posted: Wed, 06/16/2010 - 11:16 | Post subject:

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

Hi bas,

Unless the property is sold off at an auction, it will be mentioned in your credit report. You should ask your lender to sell off the property asap. However, as a negative item, it will remain in your credit report for the next 7 years.

Thanks

Like | Dislike | Share | Posted: Mon, 01/31/2011 - 00:05

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

I am trying to short sell my home right now. If it doesn't sell and I try to get a Deed in Lieu, will my credit score decrease by 250 even if I haven't missed any payments on my credit cards and any other bills? My score was about 750 three months ago. Will I have a problem renting a place?

Like | Dislike | Share | Posted: Thu, 05/05/2011 - 11:09 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Shelley,

If you want to save the property, then you can apply for a loan modification with your lender. You will get modified terms and conditions to pay off your mortgage. If you want to get rid of the property, then it would be a good option to go for a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]. This will not only help you in selling off the property but you won't be liable for the deficient balance. However, your score would go down by 250 points.

Like | Dislike | Share | Posted: Mon, 04/05/2010 - 00:46

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi yenycota,

In my opinion, it would be a better option to go for a deed in lieu of foreclosure. Though your credit score would be ruined by 250 points, but you won't be liable to pay the deficient amount to the lender. In a short sale, the lender can sue you for the balance amount resulting from the sale of the property.

Like | Dislike | Share | Posted: Sun, 11/22/2009 - 20:58

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

Hi,

It is possible for you to get a new mortgage in as little as three years.

But the major obstacle in getting approved for a new mortgage is your credit rating. You should concentrate on rebuilding your credit in order to get approval for a new mortgage.

And for that you should try to make all of your payments to your remaining creditors in a timely manner.

James

Like | Dislike | Share | Posted: Sat, 07/15/2006 - 18:12

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

When applying for a new mortgage you will be asked if your property was foreclosed on or if had given title in lieu thereof in the last 7 years. So, this information will stay on your credit report for 7 years.
Luke

Like | Dislike | Share | Posted: Sat, 07/15/2006 - 17:46 | Post subject:

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

We owner financed a property. The borrowers have done a deed in lieu of foreclosure. How to we insure that it is reported to all the credit bureaus?

Like | Dislike | Share | Posted: Thu, 06/16/2011 - 11:36 | Post subject:

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

I co-signed on a fleetwood mobile home with my mother 10 years ago. We were approved for a short-sale because I''m relocating for work and because my marital status changed. We have an offer on the house but when they came out to do an expection, there is about $2000 in repairs that needs to be done before the sale is final. The repairs are things that weren''t required when we purchased the home in 2001, but we were told that the law changed in 2003. We have already paid out about $1000 on cosmetic repairs that the relator requested and just don''t have the funds for the additional repairs. We still have 2 1/2 months left to try to complete a short sale. We are with Wells Fargo. What do they do if you have a buyer but as sellers we can''t comply to complete the sale. Do you know if they will allow us to go ahead and do a deed in lieu at this point or will we just have to proceed with a forclosure?

Like | Dislike | Share | Posted: Tue, 08/09/2011 - 08:05 | Post subject:

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

How soon can you get a new mortgage after you apply for a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]?

Like | Dislike | Share | Posted: Sat, 07/15/2006 - 17:15 | Post subject:

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

So, base on what you read regarding my situation. You think the deed in lieu is our best way out?

Like | Dislike | Share | Posted: Wed, 12/05/2012 - 20:00 | Post subject:

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

Hi Guest,

I've given my suggestions in regards to your query at:
http://www.mortgagefit.com/predeal/about38929.html#165890

Take a look at it. Hope it helps you.

Thanks

Like | Dislike | Share | Posted: Fri, 05/21/2010 - 23:57

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi anonymous,

As you're delinquent on your mortgage payments, it is a good option to apply for a deed in lieu of foreclosure. It'll not only help you in getting rid of the property but you won't be liable for paying off the balance dues even. However, your credit score would go down by 250 points.

Like | Dislike | Share | Posted: Mon, 08/23/2010 - 00:11

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

Hi Matthew,

Welcome again.

You can sign up here for your request. Kindly sign up with a different e-mail address this time.

This will directly forward your request to our loan department who will contact you within a very short period and discuss your requirement with you.

If you find any difficulty you can post it here.

God bless you.

Thanks,
Samantha

Like | Dislike | Share | Posted: Wed, 05/10/2006 - 14:26

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Doc!

Welcome back to forums!

I personally feel that deed in lieu of foreclosure is the best way to deal with your situation. If your lender agrees to this option, then you can go ahead with it.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 12/05/2012 - 21:26

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

Hi Hy. R.,

After a short sale, the borrowers are liable to pay the balance amount if they are not staying in a non-recourse state. Thus, the lender can sue her for the deficient balance. She won't be able to avoid it unless the lender forgives the amount. If a formal agreement has been signed between the seller and the buyer regarding the property sale, then the buyer can sue the seller.

To Ann,

Your query has been replied to in the given page:
http://www.mortgagefit.com/propertytransfer/about44876.html#186036

Take a look at it. Hope it helps you.

To Guest,

Rather than going for a short sale or a foreclosure, you should contact the lender and apply for a deed in lieu of foreclosure. This will not only help you in selling off the property but you won't be liable for paying the balance amount. But it'll lower your credit score by 250 points.

Thanks

Like | Dislike | Share | Posted: Fri, 10/08/2010 - 00:55

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

Does a "[url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]" on a Reverse Mtg. have any effect on your credit score?

Like | Dislike | Share | Posted: Mon, 10/29/2012 - 14:19 | Post subject:

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

Would a divorce be considered a "hardship" and thus mitigate any of the potential negative ramifications that can result after a with a deed in lieu of is executed?

Like | Dislike | Share | Posted: Mon, 03/07/2011 - 08:51 | Post subject:

matthewalong's picture
matthewalong | Joined: May 10, 2006 01:22 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you, do you know of any names or numbers in particular I could call that may have people to help...I truly appreciate the help. !!!!!!!!!!

Like | Dislike | Share | Posted: Wed, 05/10/2006 - 13:58

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi David,

It is true that a lender will agree to a short sale depending upon your financial situation. You will have to write a hardship letter mentioning your financial hardship to the lender. If the lender comes to know that you're not facing any hardship, he will not be ready to go for a short sale. If your finances show that you will be able to pay off your dues, your lender will never give you a short sale.

I don't think it is a good option to miss your payments and then qualify for a short sale. Check out a discussion as why it is not beneficial to stop payments from the given page:
http://www.mortgagefit.com/shortsale/stop-payments.html

Like | Dislike | Share | Posted: Wed, 12/23/2009 - 22:35

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

Hi Matthew,

Welcome to MortgageFit Forums.

I feel sad about your misery caused by some other whom you believed. Sometimes this sort of problems comes under the situation you went through.

I would suggest you to look for some more lenders or brokers to help you with this situation. Never get worried if you are rejected by one or a few of them, there will some who will agree to refinance under this condition.

At least a deed-in-lieu is far better than a foreclosure but you will have to explain clearly the reason behind the default.

Another option is to refinance it in your name if possible. Your credit score is a good one to qualify. We need to look at your income as you are saying it not enough to qualify.
Our Community can also help you in this matter. There is a wide network of lenders under this community and your requirement may be put forward to them. Don't get worried, refinance under these circumstances is not impossible if not easy. :)

Feel free to ask if you want to clear up some more things.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Wed, 05/10/2006 - 13:39 | Post subject:

arieliot's picture
arieliot | Joined: December 14, 2009 09:36 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello,
I have a duplex in SW Florida that is worth about 50K. I owe 143K, and am having a horrible time paying the mortgage due to income loss. I have also had a slew of bad tenants (drugs, being hauled off to jail, leaving owing thousands, etc.) and though I have applied for loan modification, I have not been presented with a permanent solution. I am getting to the point where the stress and cost is too much for me to handle. Should I consider deed in lieu? foreclosure? I am afraid of a deficiency judgment and also the tax obligations. Any suggestions would be appreciated.
Thank you!

Like | Dislike | Share | Posted: Mon, 12/14/2009 - 21:39 | Post subject:

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

Lawyers for bank of am. and federal national mortgage association gave me a warrenty deed to fed.nat.mort.assoc. for property after a forclosure papers were recorded as lis pendens. bank america said they had forclosed but attorneys said it was not completed as i gave them a warrenty deed to fed.nat.mort.assoc. can bank america still charge me with forclosure on credit report???? bank of am recorded a satisfaction of mortgage. what is up?? lawyers say do not worry..

Like | Dislike | Share | Posted: Sun, 04/11/2010 - 13:15 | Post subject:

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

THIS IS ON MY REPORT AND NEED TO KNOW IF IT WILL EFFECT MY PURCHASE IN 2011?? I DON'T UNDERSTAND DEED OR COLLATERAL?

Like | Dislike | Share | Posted: Tue, 12/28/2010 - 06:54 | Post subject:

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

before i was late in first payment i called and wwrote to bank telling them of my situation. my husband was diagnosed with III stage lung cancer and i had to quit work to take him for treatment etc. our children moved us as my husband could do no lawn etc work. they kept me hanghing for a year until i contacted their lawyers and got ball moving.

Like | Dislike | Share | Posted: Sun, 04/11/2010 - 13:25 | Post subject:

Page loaded in 0.709 seconds.