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Deed in Lieu

Posted on: 15th Oct, 2007 07:53 pm
would a first mortgage holder allow a a deed in lieu of foreclosure if the second mortgage holder agrees to release their lien?

the second mortgage holder is willing to work with us and workout a repayment plan. we had initially discussed the possibilty of a short sale but a sale doesn't appear to be likely in the near future, and now we are exploring the possibilty of a deed in lieu of foreclosure.


the second mortgage holder had said that they would work with us, of course the details would need to be documented in writing.

thanks.
Hi Wenwe,

If your financial condition is bad and you can't not pay your mortgage loan then it is better for you to go for the deed in lieu. If the second mortgage lender agrees to release their lien, the first mortgage lender, generally, agrees for deed in lieu. I think it is better for you to talk with the first mortgage lender and explain you situation.

Best of luck :)
Larry
Posted on: 15th Oct, 2007 10:19 pm
Hello Wenwe,

I think the first mortgage lender will accept a deed in lieu, if the second lender agrees to work out another repayment option with you.

It will be better if you talk to both the lenders and make your point clear to them. Keep all documents in writing to avoid any problem in future.
Posted on: 16th Oct, 2007 12:00 am
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