Posted on: 18th Jun, 2008 02:20 pm
i own two homes. both are upside-down. i want to keep the one i live in. the second home is a rental and is valued at about $150,000. my loan on it is $210,000. i can no longer afford to keep it because the rent on it is $1,000, but the loan payment is going up to $1,500 or more because it's an option arm.
i don't know what to do; i don't want to be foreclosed on. how can i convince the bank to take the deed in lieu of foreclosure?
i don't know what to do; i don't want to be foreclosed on. how can i convince the bank to take the deed in lieu of foreclosure?
Hi Cbourbon,
Well you're lender will probably not accept a deed in lieu (DIL). This is because lenders typically do not like to do a DIL on a property they know is "upside down." However, this is ok because a DIL lowers your credit score more than a short sale. A Short sale is a better option for you and will not have as bad as an affect on your credit as a DIL.
I would recommend going to home-buddies.com on this website you will find a lot of good information about a short sale and how to deal with your lender.
Hope this helps. If you have any other questions feel free to ask.
:D
Well you're lender will probably not accept a deed in lieu (DIL). This is because lenders typically do not like to do a DIL on a property they know is "upside down." However, this is ok because a DIL lowers your credit score more than a short sale. A Short sale is a better option for you and will not have as bad as an affect on your credit as a DIL.
I would recommend going to home-buddies.com on this website you will find a lot of good information about a short sale and how to deal with your lender.
Hope this helps. If you have any other questions feel free to ask.
:D
Hi Cbourbon,
Welcome to the forum.
Cliff has rightly suggested you to go for short sale as it will affect your credit less then deed in lieu of foreclosure. BTW you cannot do the deed in lieu on your own. The lender will have to accept the DIL. So you should first try out short sale and of you cannot do it then you can try out or request the lender to accept the deed in lieu.
BTW Cliff there are lot's of helpful information in this site too. Cbourbon you can go through the article 17 ways to protect yourself from the foreclosure trap . Hope it helps :)
Feel free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
Cliff has rightly suggested you to go for short sale as it will affect your credit less then deed in lieu of foreclosure. BTW you cannot do the deed in lieu on your own. The lender will have to accept the DIL. So you should first try out short sale and of you cannot do it then you can try out or request the lender to accept the deed in lieu.
BTW Cliff there are lot's of helpful information in this site too. Cbourbon you can go through the article 17 ways to protect yourself from the foreclosure trap . Hope it helps :)
Feel free to ask if you have any further questions.
Best of luck,
Larry
Cliff and Larry: Thank you both - I appreciate your insight. I had never heard of short sale so I will read up on that on both websites. This forum
is very cool and helpful - thanks again.
is very cool and helpful - thanks again.
No problem we are here to help If you have any further questions do not hesitate to ask. :D