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Company Loan Type APR Est. Pmt.

rental positive equity,negative cashflow,return keys to bank

Posted on: 08th Sep, 2010 04:38 pm
i have a rental with positive equity, negative cashflow potentially endangering my small reserve fund and possible even my own home (same lender). loan is a recource loan.
a helpful answer suggested i attempt to convince the bank to give me a "deed in lieu of foreclosure". why can't i just send them the keys? thanks
Hi ae6nn!

Welcome to forums!

If you just send the keys to the lender, then he would foreclose the property. As your loan is a recourse one, the lender will be able to come after you for the deficient balance resulting from the property sale. However, in case of a deed in lieu of foreclosure, you won't be liable for paying the balance dues resulting from the property sale.

Feel free to ask if you've further queries.

Sussane
Posted on: 08th Sep, 2010 08:31 pm
I understand that since I have a reserve and they own my other home that it would be very difficult to get a deed in lieu. Is that right?
Posted on: 08th Sep, 2010 08:43 pm
Hi ae!

Welcome to forums!

It is true that unless you have a financial hardship, the lender will not be ready for a deed in lieu of foreclosure.

Sussane
Posted on: 08th Sep, 2010 09:57 pm
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