Posted on: 08th Oct, 2007 03:11 pm
House is worth much less than purchase price. What is reprocussion of deeding property back to lender in lieu of foreclosure or short sale.
Yes, you can give your property back to the lender by a deed-in-lieu and not short sale. But lenders will not allow for deed-in-lieu easily; for that you will have to prove that you are financially not sound enough to pay for the loan now.
Hello Amos,
You can definitely give back your property to the lender by a deed-in-lieu of foreclosure but your lender might refuse to accept that and go for a short sale. The lender has the right to claim for a deficiency judgement in case of a short sale but not for a deed-in-lieu. In that case you have to negotiate with your lender for a deed-in-lieu.
A short sale will lower your credit by about 100 points and the deed-in-lieu recorded in your report will also lower your score, but it is not as damaging as foreclosure.
For further information you may look here
http://www.mortgagefit.com/michigan/deedinlieu-shortsale.html#dil
You can definitely give back your property to the lender by a deed-in-lieu of foreclosure but your lender might refuse to accept that and go for a short sale. The lender has the right to claim for a deficiency judgement in case of a short sale but not for a deed-in-lieu. In that case you have to negotiate with your lender for a deed-in-lieu.
A short sale will lower your credit by about 100 points and the deed-in-lieu recorded in your report will also lower your score, but it is not as damaging as foreclosure.
For further information you may look here
http://www.mortgagefit.com/michigan/deedinlieu-shortsale.html#dil