Posted on: 18th May, 2010 09:31 am
Our home was discharged in BK, July 2008. We are currently living in the home, paying the bank as we always have, however we can no longer afford the home. We would like to purchase a new home (and have found the perfect house) and get pre approved for an FHA loan. We meet all the requirements for FHA and would like to proceed, but since the bank hasn't foreclosed on the property our name is still on the deed. We can't get an FHA loan if we currently own a home. Should we do a deen in leiu of foreclosure? If so, how long would we be able to stay in the home? I don't think that a DIL or foreclosure will negativly effect our credit since the property is already discharged. Just not sure which route to go at this point.
hi tracey,
you can apply for a deed in lieu of foreclosure with your lender. it will take quite a few days in order to complete the whole process if the lender agrees to it. you can leave the property immediately after its sold off. as far as i know, the deed in lieu of foreclosure may have a negative affect on your credit report though the property has been discharged in your bankruptcy filing.
thanks
you can apply for a deed in lieu of foreclosure with your lender. it will take quite a few days in order to complete the whole process if the lender agrees to it. you can leave the property immediately after its sold off. as far as i know, the deed in lieu of foreclosure may have a negative affect on your credit report though the property has been discharged in your bankruptcy filing.
thanks