Posted on: 26th Feb, 2009 06:39 pm
i live in virginia. we own a home now that when we move thsi summer because of my husband retiring from the military, we will not be able to pay on anymore. we have not been able to seel the home. we have only owned the home for a little over 2 years. we will be moving to texas in the summer and my husbands pay will take a big hit because of retirement. what are our options? is deed in lieu of foreclosure a good idea to start? how does it work (in laymans terms please)? i am afraid of a foreclosure. are there other options? thanks for any help at all.
Hi angel66dkc,
If you are delinquent on your payments, then you can definitely apply for a deed in lieu. You will have to write a hardship letter to the lender wherein you can state the reasons for not paying the debts. If the lender is convinced, he will accept your request.
In a deed in lieu, your property will be taken away by the lender and will be sold in the market. This will help the lender to recover his dues. If there is a deficient amount resulting from the sale of the property, then that amount will be forgiven. But you will have to pay taxes on this forgiven amount. Moreover your credit score will be lowered by 250 points.
There are different options to stop foreclosure. One of them is deed in lieu. To know about other options of avoiding foreclosure, check out the following link:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Thanks
If you are delinquent on your payments, then you can definitely apply for a deed in lieu. You will have to write a hardship letter to the lender wherein you can state the reasons for not paying the debts. If the lender is convinced, he will accept your request.
In a deed in lieu, your property will be taken away by the lender and will be sold in the market. This will help the lender to recover his dues. If there is a deficient amount resulting from the sale of the property, then that amount will be forgiven. But you will have to pay taxes on this forgiven amount. Moreover your credit score will be lowered by 250 points.
There are different options to stop foreclosure. One of them is deed in lieu. To know about other options of avoiding foreclosure, check out the following link:
http://www.mortgagefit.com/foreclosure/17ways-avoid.html
Thanks