Posted on: 05th Aug, 2010 10:42 am
My home has been on the market since April, 2009 in Greeley, CO, with no interest. The price has been lowered $90k since April, 2009. We have managed to keep our payments to date but within the next couple months that will change as my husband's health is deteriating and I do not work. We have a 2nd on the house and the HOA has attached a lien for dues not paid (that's another story in itself). We owe $395k and the price has now been lowered to $359k. I have sent a letter to Citimortgage about a 'deed in lieu' of foreclosure; but I am at a loss as I know our credit will take a big hit but my husband's health is foremost the first in importance. What steps can I take to rid ourselves of this overbearing debt?
Hi cosmos,
If your lender accepts your request for a deed in lieu of foreclosure, though it would reduce your credit score by 250 points, yet you won't be liable for paying the deficient balance resulting from the sale of the property. The deficient balance will be forgiven by the lender.
Thanks
If your lender accepts your request for a deed in lieu of foreclosure, though it would reduce your credit score by 250 points, yet you won't be liable for paying the deficient balance resulting from the sale of the property. The deficient balance will be forgiven by the lender.
Thanks