Posted on: 14th Oct, 2006 04:25 am
If a deed in lieu is done will that prevent one from getting another mortgage loan?
Hi,
To Dbart,
In case of a deed in lieu, the lender forgives the deficient amount resulting from the sale of the property. Your lender has also forgiven the deficient amount. This forgiven deficient amount will be considered as your income by the IRS and thus, you can receive a 1099-c form. However, depending upon your state laws, taxes on the forgiven amount can also be relieved. I would suggest you to contact a tax adviser and take his opinion in this regard.
To Shelly,
Deed in lieu will help you selling off the property. It will lower your credit score by 250 points and will stay in your credit report for the next 7 years. However, after the completion of deed in lieu foreclosure, you may take steps to improve your credit which will help you in getting back on track. To know some of the simple steps to improve your credit score, check out the following page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
As far as your revolving credit is concerned (i.e credit cards), it depends upon your credit card issuer whether or not they would change your terms.
Thanks
To Dbart,
In case of a deed in lieu, the lender forgives the deficient amount resulting from the sale of the property. Your lender has also forgiven the deficient amount. This forgiven deficient amount will be considered as your income by the IRS and thus, you can receive a 1099-c form. However, depending upon your state laws, taxes on the forgiven amount can also be relieved. I would suggest you to contact a tax adviser and take his opinion in this regard.
To Shelly,
Deed in lieu will help you selling off the property. It will lower your credit score by 250 points and will stay in your credit report for the next 7 years. However, after the completion of deed in lieu foreclosure, you may take steps to improve your credit which will help you in getting back on track. To know some of the simple steps to improve your credit score, check out the following page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
As far as your revolving credit is concerned (i.e credit cards), it depends upon your credit card issuer whether or not they would change your terms.
Thanks
Our house has been on the market for 6 weeks. We rec'd an offer today that if we accept we will have to go to the closing table with $28,000. We can come up with some of it, but not all. We are concerned that we will not be able to get a loan for the difference. We are 3 months late in our payments. Should we consider a deed-in-lieu?
Hi Lori,
You can consider the option of deed in lieu. This will help you in selling off the property and you won't be liable for the deficient amount resulting from the sale of the property.
You can consider the option of deed in lieu. This will help you in selling off the property and you won't be liable for the deficient amount resulting from the sale of the property.
I'm transferring within the next 7 months and it is literally impossible to sale my house for what I owe to the bank. If i sell for less I have to come out of pocket anywhere between 10-15k, which I don't have. Renting will not cover the mortgage. I have no problem paying the mortgage but once I move I need the income to support my family at my new location. Should I consider the DIL since I will be sitting overseas for the next three years and during that time my credit will recover?
we are in a pickle...and are trying to figure out what is our best way to go. my husband and i are 48 years old have 45k in credit card debt and owe 45k on our first mortgage (fha) and 60k (interest only home equity line) on the second. our home is worth what we owe. in this market it might be worth a little less that what we owe. we have 4 children and we are living very conseratively to make ends meet. we have had to keep borrowing on our second mortgage. my husband is in denial because we still have perfect credit and will once the home equity line is gone start in on the 401k money. i think we need to file bankruptcy and loss the house (we still could buy another house and then loss the present house we are in.) what is your recomendations?
hi!
welcome to forums!
to guest,
deed in lieu can be a good option for you as you won't be liable for the deficient amount resulting from the sale of the property. however, you should note that your credit score will get lowered by 250 points.
to lorie,
you should not file bankruptcy just because of your mortgage debts. if you want to get rid of your property, then you should try for a deed in lieu of foreclosure with your lender.
feel free to ask if you've further queries.
sussane
welcome to forums!
to guest,
deed in lieu can be a good option for you as you won't be liable for the deficient amount resulting from the sale of the property. however, you should note that your credit score will get lowered by 250 points.
to lorie,
you should not file bankruptcy just because of your mortgage debts. if you want to get rid of your property, then you should try for a deed in lieu of foreclosure with your lender.
feel free to ask if you've further queries.
sussane
i just did a deed in lieu of foreclosure which
it does not reflect on my credit. can i apply
for another mortgage. the private lender had
not reported my mortgage payments therefore
is not on my credit.
it does not reflect on my credit. can i apply
for another mortgage. the private lender had
not reported my mortgage payments therefore
is not on my credit.
Hi Geisha!
Welcome to forums!
If the deed in lieu of foreclosure does not get reflected on your credit report and if it has not affected your credit, then you can apply for a fresh mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the deed in lieu of foreclosure does not get reflected on your credit report and if it has not affected your credit, then you can apply for a fresh mortgage.
Feel free to ask if you've further queries.
Sussane
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