Posted on: 20th Mar, 2008 01:40 pm
I have a home in one town, my job transfered me to another town 2 years ago. I rented out my previous home to make the payments. The tennants have moved out, destroying the house before they left. I cannot afford to make the payments, or pay for all of the repairs needed to make it livable. I owe right at what it is worth. I have put it on the market for sale, but it has not sold yet. It is time to make a decision about what to do. My husband and I have both been working so hard saving to buy a nice home in the town we now live, and paying off any negative credit we had. We were planning on buying a new house in a year and a half. Will a deed of leiu on the first house prevent us from being able to purchase a new home when the time comes?
Hi Reyes,
Welcome to the forum.
I think you should first inform your lender about your situation ASAP. You cannot just Deed in lieu yourself. Request your lender and see if he allows you for deed in lieu. On above of that, dIL will have a huge negative effect on your credit report and will be shown for 10 years. But the best part of it is if the lender allows DIL then he will not ask you for a deficiency judgment.
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
I think you should first inform your lender about your situation ASAP. You cannot just Deed in lieu yourself. Request your lender and see if he allows you for deed in lieu. On above of that, dIL will have a huge negative effect on your credit report and will be shown for 10 years. But the best part of it is if the lender allows DIL then he will not ask you for a deficiency judgment.
Feel free to ask if you have any further questions.
Best of luck,
Larry
reyes, a deed-in-lieu, as larry indicated, will have a negative effect on your credit standing. what you'll need to do to help you overcome that in the future is to ensure that you have as much documentation as possible to demonstrate the circumstances. in that fashion, you might have an opportunity to convince a lender in the future that you were forced into making such a decision; and that you deserve consideration for a new mortgage.
as larry said, you need to discuss the situation with your current lender in depth.
also, depending on the degree of damage done by your tenants, it might just make sense to do whatever you can to make repairs and (perhaps) find a new tenant, which will assist you in making payments.
as larry said, you need to discuss the situation with your current lender in depth.
also, depending on the degree of damage done by your tenants, it might just make sense to do whatever you can to make repairs and (perhaps) find a new tenant, which will assist you in making payments.
