Posted on: 27th Sep, 2006 09:40 am
how long does a deed in lieu take and can a foreclosure cause a garnishment?
Hi James?!
To find whether your loan is recourse or non-recourse, you will have to go through your loan contract. This will be mentioned there. As far as deed-in-lieu foreclosure is concerned, it will take some time. Normally it takes around 90 days from the time of start off.
Thanks
To find whether your loan is recourse or non-recourse, you will have to go through your loan contract. This will be mentioned there. As far as deed-in-lieu foreclosure is concerned, it will take some time. Normally it takes around 90 days from the time of start off.
Thanks
My husband and I bought our condo in 2006 for $417K. We owe $340K, but the current market value of the condo is $320K. I have one child and will be giving birth to my second in about 3 weeks. I will not be working after I have my second child. My husband's job is relocating our entire family overseas in 6 months, for a period of 6 years, and there is no way that we will be able to afford our mortgage payments. The lender agreed to let us list our condo as a short-sale, and it has been on the market for the past 3 months. We haven't received any offers. Also, there are 13 other condo units listed in our neighborhood as short-sales! We have been current on our mortgage payments, however we will not be able to continue after this month. We are thinking of applying for a deed-in-lieu. What are the chances that the lender will accept a DIL? Is this the best way for us to go?
Welcome StressedMomma,
You can apply for a deed in lieu foreclosure with the lender but it will be the lender's description whether he will accept it or not. A deed in lieu is similar to a short sale. The only difference is that the lender will forgive the deficient amount resulting from the sale of the property. However, you will have to pay taxes on this forgiven amount. In my opinion it is quite a good option for you.
You can apply for a deed in lieu foreclosure with the lender but it will be the lender's description whether he will accept it or not. A deed in lieu is similar to a short sale. The only difference is that the lender will forgive the deficient amount resulting from the sale of the property. However, you will have to pay taxes on this forgiven amount. In my opinion it is quite a good option for you.
I am currently going through a divorce. I am 3 pmts behind and have recvd letter from mortage company re accelerance. 3 months ago I asked for help but they would not because I hade a perfect history now I;m behind and trying to qualify for a program. Because I have a fixed 6.5% rate FHA loan I can't seem to get any help. Which is worse a BK or DIL? Thank you
hello ncoleman,
sorry to hear about your current divorce and mortgage issue.
you still need to be talking to someone within the loss mitigation department of your lender. they have several workout options that you may qualify for to help keep your home. these options include a repayment plan (on the amounts that you are currently behind on), or a loan modification, forbearance, etc. you may not have to do a deed in lieu or a bankruptcy. please check with them.
as far as which would be worse...they both are very damaging to your credit. a deed in lieu will drop your score by at least 150 points up to 250 points. a bankruptcy will drop your score by about 200 points. a foreclosure will drop the points by about 250 points.
i hope this will help you. please let us know if you still have questions. you may visit home-buddies.com and review a free guide to help with mortgage issues.
good luck. :d
sorry to hear about your current divorce and mortgage issue.
you still need to be talking to someone within the loss mitigation department of your lender. they have several workout options that you may qualify for to help keep your home. these options include a repayment plan (on the amounts that you are currently behind on), or a loan modification, forbearance, etc. you may not have to do a deed in lieu or a bankruptcy. please check with them.
as far as which would be worse...they both are very damaging to your credit. a deed in lieu will drop your score by at least 150 points up to 250 points. a bankruptcy will drop your score by about 200 points. a foreclosure will drop the points by about 250 points.
i hope this will help you. please let us know if you still have questions. you may visit home-buddies.com and review a free guide to help with mortgage issues.
good luck. :d
i owe almost $40,000.00 for the home loan which was just over $40,000.00 to start with.
i am unable to afford all of the repairs that the home would require to continue living in.
i have about $3000.00 equity in the home.
i have been doing research and i think the best solution is a "deed in lieu of foreclosure".
what are the steps i need to take?
thank you so much for any help!
kim
i am unable to afford all of the repairs that the home would require to continue living in.
i have about $3000.00 equity in the home.
i have been doing research and i think the best solution is a "deed in lieu of foreclosure".
what are the steps i need to take?
thank you so much for any help!
kim
Hi faithinkainay,
A lender will accept a deed in lieu foreclosure only if you have defaulted on your payments for at least 1 month. You will have to apply for a deed in lieu foreclosure with the lender. You will have to write a hardship letter to the lender and tell him as to why you can't pay the mortgage. If the lender accepts the deed in lieu, you will have to sign away the property to the lender. The lender will then sell off the property in the market in order to recover the debts.
However there are chances that the sale of the property will result into a deficient amount. As you will filing a deed in lieu foreclosure, the lender will forgive the deficient amount. But you will have to pay taxes on this forgiven amount as it will be considered as your income. Moreover a deed in lieu foreclosure will also lower your credit score by 250 points. To know more about deed in lieu, check out the following link:
http://www.mortgagefit.com/deed-lieu.html
Wish you a Merry Christmas.
Thanks
A lender will accept a deed in lieu foreclosure only if you have defaulted on your payments for at least 1 month. You will have to apply for a deed in lieu foreclosure with the lender. You will have to write a hardship letter to the lender and tell him as to why you can't pay the mortgage. If the lender accepts the deed in lieu, you will have to sign away the property to the lender. The lender will then sell off the property in the market in order to recover the debts.
However there are chances that the sale of the property will result into a deficient amount. As you will filing a deed in lieu foreclosure, the lender will forgive the deficient amount. But you will have to pay taxes on this forgiven amount as it will be considered as your income. Moreover a deed in lieu foreclosure will also lower your credit score by 250 points. To know more about deed in lieu, check out the following link:
http://www.mortgagefit.com/deed-lieu.html
Wish you a Merry Christmas.
Thanks
can you stop making payments during the 3 month selling time for a short sale process in California
Welcome cam,
A short sale is approved by the lender only when you are deficient on the payments. So, I think you will not have to make the payments during those 3 months. You should speak to the lender and check out if he wants you to pay the dues or not.
A short sale is approved by the lender only when you are deficient on the payments. So, I think you will not have to make the payments during those 3 months. You should speak to the lender and check out if he wants you to pay the dues or not.
i provided seller financing for a home i owned. the buyers defaulted on a 5,000. principal pmt last june. now, they want me to accept deed in lieu, but they owe me some back taxes and the 5,000. plus two mortgage pmts now. if i accept their deed in lieu, will i ever recoup my money?
by the way, the buyers still owe me 280,000. which in this economy i may never recoup.
i s old property and carried note of 100000.00 @ 6%. borrower cant pay
Hi
To betty,
If you are going to accept a deed in lieu, you are actually agreeing to accept an amount less than what is owed. Thus, you'll have to be satisfied with a lesser amount of money and there's little hope for you to recoup the deficient money.
To travis,
If the borrower can't pay there's little you can do about it in owner financing. But I think you can try and modify the existing loan in some way so the monthly payments are reduced and the borrower can afford to make the payments.
To betty,
If you are going to accept a deed in lieu, you are actually agreeing to accept an amount less than what is owed. Thus, you'll have to be satisfied with a lesser amount of money and there's little hope for you to recoup the deficient money.
To travis,
If the borrower can't pay there's little you can do about it in owner financing. But I think you can try and modify the existing loan in some way so the monthly payments are reduced and the borrower can afford to make the payments.
My daughter and son-in-law have fallen 2 months behind in their mortgage. They have been discussing DIL with their lender. They are not looking to stay in this home, they absolutely cannot afford to keep living there. They are looking to start fresh, and rent somewhere they can afford. Will they be responsible for repaying any money to the bank. Can they be garnishered? Should they obtain a lawyer? :( :(
Hi Kathy,
It's up to the lender whether they'll forgive the deficiency from the deed in lieu. In most cases, they forgive the difference. In case, they don't forgive the deficiency, your daughter and son in law will be responsible for it. The lender can sue them for non-payment or can garnish their wages. I think they should talk with the lender regarding this and check if they intend to sue for the deficiency.
It's up to the lender whether they'll forgive the deficiency from the deed in lieu. In most cases, they forgive the difference. In case, they don't forgive the deficiency, your daughter and son in law will be responsible for it. The lender can sue them for non-payment or can garnish their wages. I think they should talk with the lender regarding this and check if they intend to sue for the deficiency.