Posted on: 22nd Jan, 2010 03:55 pm
We designed and built our dream home (over $1m) 4 years ago. During the construction, our builder became a nightmare and we discovered monies missing and a house unfinished. It took a 3 year court battle to get a settlement, with which every penny went into fixing the house to get ready to sell. Our legal bills were far greater than the settlement and we had to cash out retirement accounts in order to pay them. Now the IRS wants $65K in taxes. AND, 3 years ago we moved out of the country and know we will not be returning to the house or that state. The house has been empty for 3 years and up for sale for 9 months. We ARE current on the payments but it is killing us and I am not sure how much longer we can continue.
We are considering the deed in lieu because we just want to hand it back over to the bank. We are even willing to take out a loan and pay off whatever amount is still owed if they cannot sell it for fair market value. Our credit rating is already ruined because of what this legal process has taken out on us. And it is unlikely that we will return to the US in the next 5 years anyway.
What is your opinion???
We are considering the deed in lieu because we just want to hand it back over to the bank. We are even willing to take out a loan and pay off whatever amount is still owed if they cannot sell it for fair market value. Our credit rating is already ruined because of what this legal process has taken out on us. And it is unlikely that we will return to the US in the next 5 years anyway.
What is your opinion???
You can apply for a deed in lieu of foreclosure with your lender. It is a good option to get rid of the property. Moreover, the best part is that you won't be liable to pay any deficient amount to the lender. It will be forgiven. Depending upon your state laws, you won't have pay taxes for that forgiven amount.
Thank you so much for your response. We too fele that that is our best option. We have done some research and have found out the horrible business practices our Lender Service has been involved in, wich is Aurora. We have read the horrow stories about what they do to people who try this option. They make them not pay for 3 months, than end up foreclosing and than denying them after months of trying to get it resolved. If this is what we are facing with them, than heck, i say just stop paying and let them come after us. It's empty so its not like I need to occupy it or try to find somewhere els eto live. This is our dilima with the whole situation.
Thank you so much for your response. We too feel that it is our best option. We have done some research and have found out the horrible business practices our Lender Service has been involved in, which is Aurora. We have read the horror stories about what they do to people who try this option. They make them not pay for 3 months, than end up foreclosing and then denying them after months of trying to get it resolved. If this is what we are facing with them, than heck, I say just stop paying and let them come after us. It's empty so its not like I need to occupy it or try to find somewhere else to live. This is our dilemma with the whole situation.