Posted on: 21st Sep, 2007 10:59 am
I bought an investment property last year January. Since then, the market has taken a dive for the worst. The builder is selling the same unit $100k less than I paid for it. I had to add more than $500 a month to pay the mortgage. The mortgage has adjusted, and I don't have a tenant in there, and I cannot afford the mortgage any longer. Should I DLF the property?
$100k less. WOW. I was speechless for a minute.
Where do you live?
Who did the mortgage for you? Was it the builder or an affiliated company?
Sounds a little fishy to me that a builder would get that aggressive when they just sold you your house so recently.
Were other homes priced similar to yours when you bought it?
Where do you live?
Who did the mortgage for you? Was it the builder or an affiliated company?
Sounds a little fishy to me that a builder would get that aggressive when they just sold you your house so recently.
Were other homes priced similar to yours when you bought it?
Yes Olowomade, you can go for a deed-in-lieu but or that you need to talk to the lender who has financed the purchase of your property.
Usually lenders do not agree on a deed-in-lieu because they do get the rights to seek a deficiency judgment in case the sale proceeds are not enough to cover the outstanding balance. But this would depend on what the market is like and the possible price range at which your lender can sell it off.
Take Care
Usually lenders do not agree on a deed-in-lieu because they do get the rights to seek a deficiency judgment in case the sale proceeds are not enough to cover the outstanding balance. But this would depend on what the market is like and the possible price range at which your lender can sell it off.
Take Care
Hi Olowomade,
If you can no longer afford the adjusted payments towards your mortgage, you can go for a deed-in-lieu of foreclosure on the property. In that case, you will have to talk to the lender if he is going to accept the deed-n-lieu or not.
If you can no longer afford the adjusted payments towards your mortgage, you can go for a deed-in-lieu of foreclosure on the property. In that case, you will have to talk to the lender if he is going to accept the deed-n-lieu or not.
yes, you can apply a deed-in-lieu of foreclosure ,but it need the agreement by the lender .
I purchased 5 houses (investment) in Orlando Fl and all of them are up side down now. The renters left and I could not afford the mortgage. All of them are in the process of foreclosure and would like to know if I am better off giving the houses back to the lenders (deed in liue of forclosure). If the lenders agree on deed in liue am I liable to pay something--for example property tax or taxes on phantom income? I am getting ready to retire at the end of 2010 and will not be able to pay any extra bills. By the way, I live in Maryland and the properties are in Orlando, FL. What does "conveyance tax" means. I am also planning on filing bankcruptcy if I have to. Thanks.
Welcome Julie,
You can definitely speak to the lender about deed in lieu but it will be the lender's discretion to accept it or not. In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven. On this forgiven amount you will have to pay taxes. Your credit score will be lowered by 250 points which is similar to foreclosure.
A conveyance tax is imposed when you transfer real estate property. Usually there are two conveyance taxes - municipal and state. In my opinion, if the lender accepts your deed in lieu, then you won't have to file a bankruptcy
You can definitely speak to the lender about deed in lieu but it will be the lender's discretion to accept it or not. In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven. On this forgiven amount you will have to pay taxes. Your credit score will be lowered by 250 points which is similar to foreclosure.
A conveyance tax is imposed when you transfer real estate property. Usually there are two conveyance taxes - municipal and state. In my opinion, if the lender accepts your deed in lieu, then you won't have to file a bankruptcy
I purchased a house in Florida but I lived in NY.I don't have any late payments but I am not working and I can't afford to pay the mortgage payments. I was advised that I have to put the house for sell at lease for three months in the market before I apply for Deed in Lieu of Forclosure. Is this correct? How can I start the process?. I called the lender but everytime is different person at the phone and as a result different advises Now I am confused and I don't know what to do. I appreciate your help.. Eliana
We bought a second home in Florida (we live in NY) and rented it out. The villa is now worth $100,000 less than when we bought it (4 years ago). The rents have lowered in that area and now we can't afford to keep the property. We are spending $600 a month out of our pocket. We have it for sale (trying for short sale with a realtor) but have had no luck yet (2 1/2 months). Should we try for Deed in Liu instead? We would appreciate your help. Thanks.
Hi!
Welcome to forums!
To Eliana,
You will have to list the property in the market for 3 months and check whether you can sell it off. You can contact a real estate broker and list the property in the market.
To Teena,
You can definitely try for a deed in lieu. However, the lenders generally accept a deed in lieu when you are delinquent on your mortgage payments. However, you should note that a deed in lieu foreclosure will badly effect your credit score and lower it by 250 points.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
To Eliana,
You will have to list the property in the market for 3 months and check whether you can sell it off. You can contact a real estate broker and list the property in the market.
To Teena,
You can definitely try for a deed in lieu. However, the lenders generally accept a deed in lieu when you are delinquent on your mortgage payments. However, you should note that a deed in lieu foreclosure will badly effect your credit score and lower it by 250 points.
Feel free to ask if you have further queries.
Sussane
what is the difference betwenn deed-in-lieu and foreclosure? how is the credit affected by them? thank you
We bought a house to help our daughter and family in Florida, we put it up for sale right away but it did not sell, that is when everything took a dump we live in CA they have been unable to make payments ever since we purchased the home so we have been making all the payments we want to get out of this situation and just hand over the keys to the lender we have everything we need so we don't care if this ruins our credit at this point what do you suggest we do, will they come after our other assests?
Hi Kathleen,
As you are facing problem with paying off the mortgage dues, you should inform your lender about this and apply for a deed in lieu of foreclosure. If the lender accepts your deed in lieu request, then you can surrender the property to the lender. The lender will sell off the property and recover his dues. As far as the deficient amount is concerned, he would forgive it.
However, if the lender goes for a foreclosure, then he can sue you for the deficient amount resulting from the sale of the property. He will not come after your personal assets but could place lien on other properties.
Thanks
As you are facing problem with paying off the mortgage dues, you should inform your lender about this and apply for a deed in lieu of foreclosure. If the lender accepts your deed in lieu request, then you can surrender the property to the lender. The lender will sell off the property and recover his dues. As far as the deficient amount is concerned, he would forgive it.
However, if the lender goes for a foreclosure, then he can sue you for the deficient amount resulting from the sale of the property. He will not come after your personal assets but could place lien on other properties.
Thanks
We bought our home back in 04. My husband and i lost our jobs in 07 we dumped all our savings in paying mortage. We are upside down by 200K and just can not make it anymore. The lender did two modifications but the loan is interest only and will not modify it to fix. I cannot see the light at the end of the tunnel any suggestions?
We bought our home back in 04. My husband and i lost our jobs in 07 we dumped all our savings in paying mortage. We are upside down by 200K and just can not make it anymore. The lender did two modifications but the loan is interest only and will not modify it to fix. I cannot see the light at the end of the tunnel any suggestions?