Posted on: 29th Oct, 2008 07:30 pm
Hi,
I have a rental property and a HELOC. If I do a DIL of Foreclosure, would i still get a Deficiency Judgement for the HELOC portion? Should I do a Short Sale instead? If so, how will I be held responsible for the HELOC. Any help with this will be appreciated.
Robert
I have a rental property and a HELOC. If I do a DIL of Foreclosure, would i still get a Deficiency Judgement for the HELOC portion? Should I do a Short Sale instead? If so, how will I be held responsible for the HELOC. Any help with this will be appreciated.
Robert
welcome mmora,
if you go for a deed in lieu (dil) because of non-payment of the first mortgage or a heloc (second mortgage), you won't be charged with the deficiency payment as because deed in lieu waives off the lender's right to collect the deficiency.
a short sale would be better as far as the credit effects are concerned. but you can be asked to pay the deficiency, if any.
if the lender accepts a deed in lieu because of the first mortgage, the heloc will probably be charged-off and sold off to a collection agency who'll try to collect the unpaid debt from you.
to know more on second mortgage charge-off, refer to http://www.mortgagefit.com/know-how/secondloanchargeoff.html .
if you go for a deed in lieu (dil) because of non-payment of the first mortgage or a heloc (second mortgage), you won't be charged with the deficiency payment as because deed in lieu waives off the lender's right to collect the deficiency.
a short sale would be better as far as the credit effects are concerned. but you can be asked to pay the deficiency, if any.
if the lender accepts a deed in lieu because of the first mortgage, the heloc will probably be charged-off and sold off to a collection agency who'll try to collect the unpaid debt from you.
to know more on second mortgage charge-off, refer to http://www.mortgagefit.com/know-how/secondloanchargeoff.html .
Hi mmora!
Adonis is right. In case of DIL, the deficient amount will be forgiven but if its a short sale, then you will have to pay off the deficient amount. In case of charge off, if you are unable to pay the collection agency, then liens will be placed on other property or your wages can also be garnished.
Thanks.
Adonis is right. In case of DIL, the deficient amount will be forgiven but if its a short sale, then you will have to pay off the deficient amount. In case of charge off, if you are unable to pay the collection agency, then liens will be placed on other property or your wages can also be garnished.
Thanks.
I am in the State of Florida.I am facing foreclosure or a deed in lieu.In the event that there is a shortfall after bank auctions or sells,can they place a lien on my principal homestead residence in Florida.Thanks
I should have mentioned that it was a rental property that is possible foreclosure
Hi gordon,
If the lender does a deed in lieu foreclosure, then the lender will not place liens on other properties as the deficient amount resulting from the sale of the property is forgiven by the lender.
But if the lender forecloses the property, then he can place liens on other properties in order to recover his debts.
Thanks.
If the lender does a deed in lieu foreclosure, then the lender will not place liens on other properties as the deficient amount resulting from the sale of the property is forgiven by the lender.
But if the lender forecloses the property, then he can place liens on other properties in order to recover his debts.
Thanks.