Posted on: 24th Jun, 2008 12:00 pm
I guess I am trying to understand a DIL, I have a commercial rental property that the tenants have stopped paying rent and neighborhood is quickly declining. After a long winter the gas company is into me for 10K I can not pay my mortgage any more. My mortgage company just offered a DIL but I do not understand. We sign a DIL and the property reverts back to them and I walk away?! Sounds too easy what is the catch, what impact does it have on my credit, and how quickly can this be done? What do I not know about this?
Hi Moe,
Larry is right DIL does have a negative affect on your credit; however, that is only if you put the mortgage in your name. If you put the mortgage under a holding company then it would only affect the credit of the company.
However, given your situation it sound like a DIL or short sale would be your best option. It is important to note a DIL will have a more negative affect on your credit than a short sale. There are other options such as loan modification, forbearance and repayment plans. All of which would allow you to keep the property.
Larry is right DIL does have a negative affect on your credit; however, that is only if you put the mortgage in your name. If you put the mortgage under a holding company then it would only affect the credit of the company.
However, given your situation it sound like a DIL or short sale would be your best option. It is important to note a DIL will have a more negative affect on your credit than a short sale. There are other options such as loan modification, forbearance and repayment plans. All of which would allow you to keep the property.
