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What are the credit effects if I go for deed in lieu?

WE are currently not late on our mortgage but we have been trying to sell a house for three years. It is listed for 45% lower than the bank originally appraised and 40% lower than the tax assessment. We are current but are working with the bank for a DIL. Is this the right way to go? What should we look out for if we do decide to do a DIL? How will this effect our credit?

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

My husband and I own a condo that we want out of. We have lived there for 3 1/2 years, always paid on time. We have asked for a qualify for a modification for our lender denied and we have been turned down by other financial institutions for [url=http://www.mortgagefit.com/refinance.html]refinance[/url] because we are so upside down. My husband needs to retire for medical reasons and we can't afford to keep the house if he retires. We tried to sell but homeowners are involved in litigation with the builder for defective building so obviously no takers. This has devalued the home even more. We want to simply walk away and let foreclosure happen as it will. Can we just move out or do we have to notify the lender of our intent. they have refused to work with us on anything and we are tired of trying.

Like | Dislike | Share | Posted: Fri, 09/18/2009 - 15:36 | Post subject:

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

I lost my job but got another one. However, the new job is 4000 miles away. I took the new job and moved last year. My husband has not moved yet - he has been trying to sell our condo. We couldn't cover the mortgage and my rent, so we rented out the condo and my husband is living with friends. We have had the condo on the market for several months with no offers. We are current on our payments, but almost out of savings and have other debt (all of which is current). We would really like to live together some time soon - what are the odds we could get a short sale or deed-in-lieu approved, even if we are not in default?

Like | Dislike | Share | Posted: Tue, 03/16/2010 - 19:05 | Post subject:

lee.elliot61's picture
lee.elliot61 | Joined: September 13, 2009 02:07 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

you can initiate process of Deed in lieu with your lender.

Prepare a hardship letter & contact your lender

Like | Dislike | Share | Posted: Fri, 09/18/2009 - 20:15

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

My septic system is failing.I am current on my mortgages (both 1st and 2nd) but cannot live in the house due to the septic and can't afford to replace. Estimated cost is 15,000 to 25,000. The house has been on the market for 2 years with no offers. We are reducing the price drastically, but still may not get any offers. We have to move out and I can't afford to make payments on the house and a rental. Should I initiate [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url] if the house does not sell in the next month or so?

Like | Dislike | Share | Posted: Fri, 07/27/2012 - 08:18 | Post subject:

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

Welcome jillianna,

The person whose name is mentioned on the mortgage docs can apply for a deed in lieu of foreclosure. If your name is not mentioned on the property deed, then you won't be able to apply for a deed in lieu of foreclosure.

Like | Dislike | Share | Posted: Tue, 09/21/2010 - 00:04

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

Welcome KathyKY,

In my opinion, it would be a good option to apply for a deed in lieu of foreclosure. Though you haven't defaulted on your mortgage payments, you may apply for it because you have been relocated for your job. However, you should note that it would be completely your lender's discretion whether or not he would accept the request.

Like | Dislike | Share | Posted: Wed, 03/17/2010 - 00:18

sunil87020's picture
sunil87020 | Joined: May 4, 2009 09:20 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In general full foreclosure will take 2 years to recover from.that will be credit effect.

Like | Dislike | Share | Posted: Fri, 12/10/2010 - 08:47

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

Welcome Brian,

It is completely the lender's discretion whether or not he will consider your request for a loan modification. If the lender feels that you do not meet the required criteria, he won't allow you a loan modification.

If you want to get rid of the property but want to [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid foreclosure[/url], then you will have to apply for a deed in lieu of foreclosure with your lender. This will help you in selling off the property and you won't be liable for paying off the balance dues to the lender.

Like | Dislike | Share | Posted: Thu, 01/20/2011 - 22:25

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

Hi Cece,

Your query has been replied to in the given page:
http://www.mortgagefit.com/problems/shortsale-defaultpayments.html#154795

Take a look at it. Hope it helps you.

Thanks

Like | Dislike | Share | Posted: Fri, 03/12/2010 - 00:17

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

Hi dee,

If you're delinquent on your mortgage payments and don't want to save your property, you can apply for a deed in lieu of foreclosure. This will help you in selling off the property but it will lower your credit score by 250 points. If you're fine with it, then you can contact your lender and apply for a deed in lieu of foreclosure.

Like | Dislike | Share | Posted: Tue, 02/21/2012 - 23:27

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

I lost my job 3 years ago after having brain surgery 3 times. I collected unemployment untill I started receiving SSD. My fiance was making the mortgage payments but we recently broke up and there is no way I can continue to pay my mortgage. I've been using my savings but they are almost depleted. Is a deed in lieu of forclosure my best option at this time i want to go to florida to be with family as I need another surgery and have no medical insurance either. please help

Like | Dislike | Share | Posted: Tue, 02/21/2012 - 14:22 | Post subject:

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

Hi bobby!

Welcome to forums!

You can definitely apply for a deed in lieu of foreclosure in order to sell off the primary property. Once the property is sold off, you won't be responsible for the balance amount as it would be forgiven by the lender. Then you can move to your rental property. However, you should note that it would affect your credit score and reduce it by 250 points.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 01/07/2010 - 22:27

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

If the consequence is the same for short sale as a foreclosure, why waste your time? Why not just foreclose and pocket as much as you can before you need to rent?[font=Arial:58cf55c158][/font:58cf55c158][color=Black:58cf55c158][/color:58cf55c158][size=18:58cf55c158][/size:58cf55c158]

Like | Dislike | Share | Posted: Thu, 03/17/2011 - 14:23 | Post subject:

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

Hi Rob!

Welcome to forums!

A short sale will have less negative affect on your credit score compared to a foreclosure. A short sale will lower your credit score by 80-100 points whereas a foreclosure will lower your score by 250 points. Those who want to save their credit normally apply for short sale.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 03/17/2011 - 22:19

hegnacella's picture
hegnacella | Joined: December 20, 2010 11:09 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

A deed in lieu of foreclosure is an agreement where you deed your property over to your lender in exchange for being forgiven all the remaining mortgage balance. Your lender has to agree to do a deed in lieu of foreclosure, and they are only likely to do this if they feel they will end up better financially than if they do a short sale.

Like | Dislike | Share | Posted: Sat, 12/25/2010 - 02:00

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

We bought a fixer upper with some property about 6 years ago. It is not our primary residence. We owe $85,000 and the last Realtor we talked to said it was only worth $40,000....our mortgage company said they would do a DIL and it would not negatively affect our credit at all. Is this true?

Like | Dislike | Share | Posted: Mon, 08/16/2010 - 12:30 | Post subject:

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

Hi Commandotom,

If you're facing severe hardship in paying off the mortgage, then you should contact the lender and apply for a [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]. However, as there are two mortgages on your property, both the lenders have to agree to it. Unless both of them agree, you won't be able to get a deed in lieu of foreclosure.

Like | Dislike | Share | Posted: Sun, 12/12/2010 - 23:24

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

I started a Modification in November 2009, after doing a six p;us month forbearabce agreement. I made 4 Trial payments (Nov., Dec., Jan., Feb.). I received a letter from my Mortgage company that my Mortgage was being sold to Bank of America starting March 1, 2010. In May i received a letter from BofA that my HAMP modification was not approved because of negative NVP. Then in July 2010, i received another from BofA for the same modification that it was turned down because of Trial plan default. I have been going back and forth with them since March. While I was making my forebearance payments and trial payments, I am now 16 payments behind and owe $39,000because i have only been making trial payments. Notice to accelarate has expired and their is no foreclosure pending. I have reapplied for the HAMP modification because i have retired and I am on a fixed income. I will not hear about the current modification that i applied for until sometime in February. I am planning on moving in June of this year. If they turn me down for Negative NVP again, what our my options other than foreclosure? is their any recourse i can take against BofA, because i think i am being screwed by them. HELP!!

Like | Dislike | Share | Posted: Wed, 01/19/2011 - 20:45 | Post subject:

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

Hi kathy!

Welcome to forums!

If you have already lost your home in a foreclosure sale, then there's hardly anything that can be done. If you're facing foreclosure and want to avoid it, then you can apply for a home affordable loan modification. This will not only help you in saving your property, but you will get better repayment plan to pay off the dues.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 11/15/2010 - 22:40

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

Welcome Tracy,

You can contact the lender and apply for a deed in lieu of foreclosure. However, as you're current on your mortgage, chances are less that you will be able to get a deed in lieu of foreclosure.

Like | Dislike | Share | Posted: Fri, 07/27/2012 - 21:49

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

I have owned my home for 6 years, paid $95K, put $20K down, A year later obtained a [url=http://www.mortgagefit.com/home-equity.html]home equity loan[/url] of $25K. Moved for a job in Sept of '07. House has been vaccant since I moved. I'm still current with my Payments.
Realator indicated property wouldn't sell for more than $55K, so I'm underwater some where between $30 - 35K. I'm not really worried about my Credit situation...? What are my chances of working a DIL when dealing with two Lenders? If the DIL won't work is there anyway to offer the 2nd lender a cash buy out of the equity loan? Suggestions?? I don't feel that renting the home out is a option, as I live too far away and don't want the hassle of a landlord/tennant situation.

Like | Dislike | Share | Posted: Sun, 12/12/2010 - 19:43 | Post subject:

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

Can I get a deed in leiu if my ex-husbands name is on the loan but he has quit claimed the property to me?

Like | Dislike | Share | Posted: Mon, 09/20/2010 - 08:40 | Post subject:

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

Hi Lizz!

Welcome to forums!

A deed in lieu of foreclosure will negatively affect your credit report and reduce your credit score by 250 points.

Sussane

Like | Dislike | Share | Posted: Tue, 08/17/2010 - 00:12

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

I own two property, my pimary property has a large payment which i can know longer afford. My rental has a mortgage also of which i have lost the income for the last 4 months. My health is not good. My primary house is large and has a basement. My health is issue is that I cant walk but about 40 to 50 feet without resting. The lost income on my rental property has sent my financial situation in a world wind and can no longer afford the 1300.00 payment Can I do a deed in lieu or a forecloser and move to my rental property, which is more affordable, without them coming after it also

Like | Dislike | Share | Posted: Thu, 01/07/2010 - 01:08 | Post subject:

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

we just went deed in lieu we tryed to get a hardship had papers from my husbands droctor and all but our'er morgage holder benefical would not let us re- fiance or hardship even though we had things too back us up. what we wont to know is the goverment helping and giveing programs too help out displaced hard working people that could not help but to loose there home considering so many people have lost there homes due to similar circumstances, is there some program that the goverment is offering lost homeowners to help them own a home again? if not our'er goverment should help us out in our'er time of need.

Like | Dislike | Share | Posted: Sat, 11/13/2010 - 19:11 | Post subject:

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

Our home is not worth what we owe. My spouse wants to do shortsale he contact a realtor he came over got or info we have called him and never heard back my husband took his advice and now we are 2 months behind on our mortagage payment I bank is call he is not calling them I do not know what to do I work he does all the time because of weather I want formulate a plan that will not effect my credit so when we have paid off our other debts we would be able in 3 yrs to 4 yrs be able to buy or build our home. If spouse was work steadly we would be able to pay loan. The house needs improvements with new siding etc and there is no way we can get what we owe to the bank if we try to sell I do not want a shortsale is deed on
lieu a better options we have leaved in home for 10 yrs put lots of money into home and husband has lots of unfinish projects and I am tired of using my income and credit cards to buy materials and projects are not completed he is always to tired he works in the construction field believe it or not 2 yrs ago I owe no one and when we refinance with hsbc at my spouse recommendation we got screwed we had a low interest to a high interest and -6000 dollars for fees they said our loan with old lender would ballooned in a few weeks stupid me did not call lender just blindly follow spouse and hsbc lender refinanced with them and did no even get money to fix house just high interest when she promised it would have been less the 6% I feel so stupid what ever advice you can give me please do thank you

Like | Dislike | Share | Posted: Thu, 03/11/2010 - 10:53 | Post subject:

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

How long does a deed in lieu take? Also how will it affect my credit score if I need to purchase a new car in the next year or two?

Like | Dislike | Share | Posted: Sat, 05/19/2012 - 21:04 | Post subject:

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

Hi carol,

A deed in lieu may take 90 days or more to complete. A deed in lieu of foreclosure will have a negative impact on your credit report. It will lower your scores by 250 points. However, if you take required steps, it will help you in improving your scores and then you will be able to buy a car in the next 2-3 years.

Thanks

Like | Dislike | Share | Posted: Sun, 05/20/2012 - 22:57 | Post subject:

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

Hi Hope,

Welcome to the forums.

You've mentioned that your home is up for the sale. And, I don't think it is in relation to the deed-in-lieu (dil), isn't it? I doubt whether the lender will accept a deed-in-lieu if your home has been on the listing already. The lender will perhaps require you to take your home from the listing and then proceed for a deed-in-lieu.

Your credit score will be affected if you go for a deed-in-lieu but if you have any other option that the lender is willing to negotiate with you, then that will be fine I guess. By the way, haven't you talked to the lender about any such option other than a deed-in-lieu?

Take Care

Like | Dislike | Share | Posted: Sun, 07/22/2007 - 21:40 | Post subject:

miller_st's picture
miller_st | Joined: January 17, 2007 04:47 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

What are the payments on this mortgage? Are they too high? Have you tried refinancing to lower the rates?

As the loan is still current there are less chances that lender would listen to any request for a dil. And you must also know that dil will bring your score down by some good number of points so it is better to avoid it if possible.

You explored a lease to purchase option? Is anybody willing to take over the house by this method?

Miller

Like | Dislike | Share | Posted: Mon, 07/23/2007 - 13:11 | Post subject:

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

my husband lost his job at the end of december, 2006. he was out of work for a few months which caused us to get behind on our mortgage. we put the house on the market in january, 2007. we want to do a deed in lieu foreclosure, but our mortgage company refuses to do so. they will not work with us on anything. we have tried to negotiate a lower payment plan but they won't budge. how long do we have left in our home? they started forclosure proceedings in march. what other options do we have?

Like | Dislike | Share | Posted: Tue, 08/07/2007 - 20:28 | Post subject:

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

we have not been able to make a payment since december of 2006. yes, our payments are too high for our new income.

Like | Dislike | Share | Posted: Tue, 08/07/2007 - 20:33 | Post subject:

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

Hi Sara,

Welcome to our forums.

I can understand what you are going through. But have patience and try to fight out this situation. We do come across tough times in our lives but one has to overcome them and move on.

As far as I know, the lender is supposed to give you a notice regarding the length of stay in your house prior to the date of the foreclosure. Just glance through the notice and if they haven't given you something like that, just ask them about it. But hey, have you made any living arrangements for yourself?

Since the foreclosure proceeding has already started, there's not much to do as far as stopping it is concerned. So, let me be frank with you. It's going to impact your credit negatively though but it's nothing doing excepting that your husband gets a job asap - may be a part time for the time being, so that at least you guys can manage your daily expenses. And, then when he is able to secure a suitable job, he can try to rebuild his credit.

Good luck :)

Like | Dislike | Share | Posted: Tue, 08/07/2007 - 21:18 | Post subject:

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

My husband has multiple sclerosis and is on permanent SS disability, making half of his former income. I refinanced the hous last year and they put the mortgage in my name only. I have been using my savings to supplement the mtg. payments, but am running out of emergency funds.
Now my husband's disease has progressed to the point where I will need to find someplace to live that is much cheaper, as I am going to have to work part time so I can help him take care of himself. I can maybe make one more payment..what do you recommend as a solution. Thanks!

Like | Dislike | Share | Posted: Sun, 12/23/2007 - 12:24 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hello Sue,

I think you may take the help of a real estate agent to sell off your property.

Do you know about the market conditions of your place? If that is down then you might get a lower price for your property that may not cover the entire mortgage balance. Then the lender might seek deficiency judgment to recover the balance amount and you shall remain responsible to pay that.

So I think it will be better to wait for some time if the market is down and then try to sell at a reasonable price.

Like | Dislike | Share | Posted: Mon, 12/24/2007 - 04:39 | Post subject:

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

Hello,

I'm in a situation where I need to sell immediately, or start Deed in Lieu proceedings. My 5 year old daughter has autism and the nearest special education services are a 3-hour bus ride, each way! We must move to another city ASAP so that we can start services for her. I currently owe $471,000 to CitiMortage for the house. I have it on the market for $525,000, but I don't believe there is any way it will sell within six months. I'm strongly considering moving at the end of this month and stopping payments on the mortgage and beginning Deed in Lieu proceedings at that time. Any advice is most welcome!

Steve

Like | Dislike | Share | Posted: Wed, 02/06/2008 - 10:44 | Post subject:

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

Hi Quinn,

Welcome to our forums.

Did you take the help of a real estate agent for the purpose of home sale? A good agent can really help you make it fast. How's the market in your locality? Are other homes on sale going through the same thing?

Well, what you can do is, consult a real estate agent and get an estimate of the time period within which your home may sell. Otherwise, request the lender for a deed-in-lieu. You may have to submit a hardship letter if you are not financially sound enough to manage the mortgage.

In case you sell and don't get enough to pay the loan, you'll have to pay the deficiency which you can avoid in a deed-in-lieu.

Feel free to discuss further.

Good luck

Like | Dislike | Share | Posted: Thu, 02/07/2008 - 02:42 | Post subject:

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

I am unable to pay the monthly payment on my home - my parents have been supplementing 1/3 of the payment but are unable to continue to do so. I have had the home listed with a realtor for several months with no prospects at all. I was interested in the deed in lieu option. I currently have no late or partial payments. I am trying to keep my credit intact as possible. What are your suggestions? There is no way I can keep the home, it is about $100,000 over what I can afford a payment on.

Like | Dislike | Share | Posted: Wed, 05/07/2008 - 05:54 | Post subject:

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

I am a single mother, divorced recently, So I was left with a big house and a big debt. I don;t know what to do - I love the house but I could not afford to pay the mortgage anymore. So far I am not yet behind (all my pay check goes there for 3 years now.) The house does not have an equity I have a 420K mortgage 1 & 2 please help me should I take short sale or Deed in lieu?

Like | Dislike | Share | Posted: Fri, 07/04/2008 - 11:03 | Post subject:

larry2's picture
larry2 | Joined: June 27, 2007 02:50 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Aimee and Titine.

Welcome to the forum.

If you are unable to make the monthly payments then you should talk with the lender and inform him your situation. Deed in lieu will have more or less similar credit effects like foreclosure on your credit report. So you can request the lender or some repayment plan or go for short sale.

And Titine, there are options other than short sale or deed in lieu. So you also should talk with the lender ASAP. If you cannot afford any of the options then you should try short sale first as it will affect your credit less than foreclosure.

To know the option through which you can [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid foreclosure[/url] you can refer to
17 ways to protect yourself from the foreclosure trap

Best of luck,
Larry

Like | Dislike | Share | Posted: Sat, 07/05/2008 - 01:46 | Post subject:

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

I would like to get rid of the house it's too big for me and my two kids. Will I be able to buy a smaller house if I choose the short sale?

Like | Dislike | Share | Posted: Sat, 07/05/2008 - 18:33 | Post subject:

brian1's picture
brian1 | Joined: June 14, 2008 05:14 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Short sale is seen by lenders the same as a foreclosure and it will be a minimum of 3 years before you can qualify again.

Good Luck
Brian

Like | Dislike | Share | Posted: Sun, 07/06/2008 - 01:31 | Post subject:

jbarto65's picture
jbarto65 | Joined: November 4, 2007 04:09 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

That stinks that it is treated like a bankruptcy, you would think that they would look at it differently.

Like | Dislike | Share | Posted: Mon, 07/07/2008 - 18:35 | Post subject:

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

As I said I am not behing of the payment. Should I stop to make any payment so the short sale will be taking into consideration? The length of the process is from 30 to 90 days.
I am aware now that in order to do a short sale there should be an offer, what happen if there is no offer, what would the bank do? Do you think the will give me a hard time for a short sale?
If the offer is too low that the value market of the house, will the bank accept it?
Thank you

Like | Dislike | Share | Posted: Fri, 07/11/2008 - 11:03 | Post subject:

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

Welcome Titine.

You should not stop payments. At least I cannot advise you to stop payments. If you cannot afford the monthly payments then inform your Mortgage Company and then sell out you property and pay off them. Is it a recourse loan or non recourse loan loan? Check it in your loan documents.

Like | Dislike | Share | Posted: Sat, 07/12/2008 - 03:39 | Post subject:

jbarto65's picture
jbarto65 | Joined: November 4, 2007 04:09 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

stopping payments will really hurt your credit score, this will affect any future loans that you will want to take out. You should consider what Niiccs has suggested, selling the property and paying off the lender.

Like | Dislike | Share | Posted: Sun, 07/13/2008 - 06:29 | Post subject:

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

Thank you for your reply, but you did not answer all my questions. The issue is that it is not easy to sell the house. If I am going to sell my house it will be less (very low) than the debt I have 60K minimum. That's why I would like to go to a short sale not only I could not afford anymore for any payment but I will loose a lot of money. Please advise and reply to the others questions. Thank you for your time

Like | Dislike | Share | Posted: Sun, 07/13/2008 - 14:35 | Post subject:

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

Hi Titine,

Welcome back.

I understand your point of view here. I think you have a mortgage on the house and if you do a short sale, certainly you're losing out good money, as you said some $60,000. What I suggest is, since the house is too big for you and your kids, why not use it to generate some income for you. It could also help you in the mortgage payments as well. Why not offer a part f it for rent and use the rental income for you loan payment. Does that sound ok to you?

Regarding the short sale, I hope you're aware of the deficiency payments, which your lender may ask for if you don't stay in an anti-deficiency state. Moreover, the anti-deficiency laws are applicable only in case of purchase mortgages. So, did you take out the mortgage to purchase the home or is the current loan a [url=http://www.mortgagefit.com/refinance.html]refinance[/url] loan?

Thanks

Like | Dislike | Share | Posted: Sun, 07/13/2008 - 22:52 | Post subject:

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

Thank you James,
I wish I could sell the house, pay off the Bank, and rent it with someone (the area where I am is not easy to rent for those spanish people there is no transportation). Those suggestions look not possible to me otherwise I have done it long time ago.
There are some big word that i don't understand but let me explain to you all my problems. I did refinance to Indymac Bank.
I have 420K as mortgage, and right now the value of the house is 340K. (maybe this is the deficiency you are talking about) if yes how the process will be with the bank.
I am divorced and could not afford to pay anymore the monthly payment for the mortgage which all my salary goes to it. That's why I am planning to do a short sale. Hence, if I understand clearly a short sale requires a buyer right? What happend if I don't have a buyer? or anybody will buy my house? It will go to forcloresure correct?
Regarding the foreclosure
I think it will go to the court and if it's going to the court do I have to pay :
something to the Indymac bank?
something to the court?
Will the bank will be behind me all the time?
Grateful if you could help me, your advises are very vital to me.
Thank you all

Like | Dislike | Share | Posted: Mon, 07/14/2008 - 07:16 | Post subject:

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

Welcome back Titine.

You are right. You should try short sale first. But if you cannot do a short sale or cannot find a buyer then you should ask the bank to accept the [url=http://www.mortgagefit.com/deed-lieu.html]deed in lieu of foreclosure[/url]. It has the credit effect similar like foreclosure but the bank will not come after you for the deficiency judgment. To know how can you [url=http://www.mortgagefit.com/foreclosure/17ways-avoid.html]avoid Foreclosure[/url] with a Deed-in-lieu at http://www.mortgagefit.com/deed-lieu.html

By the way if you face foreclosure then the lender can come after you for the deficiency judgment and you are liable to pay the legal fees. You can even file bankruptcy to avoid foreclosure. But certainly it should be your last option.

Hope it helps. Let me know if you have any further queries.

Like | Dislike | Share | Posted: Tue, 07/15/2008 - 02:46 | Post subject:

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