Posted on: 12th Jun, 2006 10:38 am
my mother passed away in december 2005, at that time i became the executor of her estate. there was a home in connection with the estate that was only in my mother's name. my name has never been on the title. i contacted an estate attorney who advised me to do a deed in lieu of foreclosure with the mortgage company since i have no desire to put the property in my name or make payments on it. do i have any legal ramifications concerning this as far as my credit report?
Hi Ann,
Your credit report may get affected with a deed-in-lieu if it is reported. But since your name is on the loan, probably there is least chance that you get affected by the deed-on-lieu.
Consult the lender as it requires your lender's approval too.
James
Your credit report may get affected with a deed-in-lieu if it is reported. But since your name is on the loan, probably there is least chance that you get affected by the deed-on-lieu.
Consult the lender as it requires your lender's approval too.
James
Hi Ann,
Welcome to MortgageFit Forums.
You must be aware that you are in no way legally responsible for your mother's debt unless you have acquired the debt jointly with your mother or you have co-signed on the loan.
But your parent's estate is responsible for the debt. The creditors need to be paid for all the unpaid debts from your mother's estate. You inherit the wealth of your mother after all the creditors are paid.
Since you don't want to keep the property in your name contact the lender and tell him about your decision and ask them for way to hand over the property to them. But in all the dealings with them you must keep it in mind that in no way you can be forced to pay the debt.
Only they can acquire the property against the debt if they want. That can be done through a deed-in-lieu but I don't feel that is necessary and even if it's a foreclosure it shouldn't affect your credit.
Feel free to ask if you have more queries.
God bless you.
For Mortgagefit,
Samantha
Welcome to MortgageFit Forums.
You must be aware that you are in no way legally responsible for your mother's debt unless you have acquired the debt jointly with your mother or you have co-signed on the loan.
But your parent's estate is responsible for the debt. The creditors need to be paid for all the unpaid debts from your mother's estate. You inherit the wealth of your mother after all the creditors are paid.
Since you don't want to keep the property in your name contact the lender and tell him about your decision and ask them for way to hand over the property to them. But in all the dealings with them you must keep it in mind that in no way you can be forced to pay the debt.
Only they can acquire the property against the debt if they want. That can be done through a deed-in-lieu but I don't feel that is necessary and even if it's a foreclosure it shouldn't affect your credit.
Feel free to ask if you have more queries.
God bless you.
For Mortgagefit,
Samantha
I thought I sold a home before buying a new one. It was a contract sale. The deal fell all to pieces before 3 months was up, but by this time I was already living in another home. This has now been 3 years ago. I have tried to sell the first home and rented it out twice trying to avoid a foreclosure and can't do it anymore. If I allow the home to foreclose, can they take my existing home that I am living in? What ramifications will I have to face?
Hi Julie,
Welcome to MortgageFit Forums.
I am not clear about which home is having the mortgage loan secured against it.
If you have the loan against your first house for which you are unable to meet the payment, then they are going to take your first house in case of a foreclosure.
You can try to sell it yourself and pay them off as you are unable to meet the payments.
Some more information would perhaps have helped to answer your query in a better way.
Feel free to ask for more doubts.
God bless you.
For MortgageFit,
Samantha
Welcome to MortgageFit Forums.
I am not clear about which home is having the mortgage loan secured against it.
If you have the loan against your first house for which you are unable to meet the payment, then they are going to take your first house in case of a foreclosure.
You can try to sell it yourself and pay them off as you are unable to meet the payments.
Some more information would perhaps have helped to answer your query in a better way.
Feel free to ask for more doubts.
God bless you.
For MortgageFit,
Samantha
Hi Julie,
I think you should sell your first house and pay the outstanding amount. Since you are already living in a different house, why should you take the liability of your first one where you face problems to keep up with the payment?
Foreclosure will not do any good to your credit report and the result will ruin your chances to qualify for any loan in future.
I think you should sell your first house and pay the outstanding amount. Since you are already living in a different house, why should you take the liability of your first one where you face problems to keep up with the payment?
Foreclosure will not do any good to your credit report and the result will ruin your chances to qualify for any loan in future.
Yeah, even I believe in the same way. Don't wait for the foreclosure to happen. Instead you can approach the lender with your problems and explain the situation to him.
Lenders normally try to find out an alternative method and think of foreclosure at last. So may be you can find out a solution there. If foreclosure seems obvious then, it's better to sell your first house and pay off the mortgage loan.
Lenders normally try to find out an alternative method and think of foreclosure at last. So may be you can find out a solution there. If foreclosure seems obvious then, it's better to sell your first house and pay off the mortgage loan.
i just purchased a home 3 months ago (investment) and found out when trying to refinance that house isn't worth what the appraiser said it was. so the ltv is low and i can't even do a rate/term refinance. with that said, i am not able to handle payments. what's the first step of the deed in lieu process?
You can refer this, hope this helps
http://www.hud.gov/offices/hsg/sfh/nsc/faqdil.cfm
http://www.hud.gov/offices/hsg/sfh/nsc/faqdil.cfm
Hi,
Before you go for a deed-in-lieu, you should submit a written offer of such a conveyance to the lender. This written statement acts as an evidence of the fact that you can enter into a negotiation with your lender. The statement also proves that you have agreed for the deed-in-lieu process at your own will and not under compulsion from the lender.
You can then negotiate with the lender and then reach a final agreement.
Hope this will serve your purpose.
Thanks,
Sara.
Before you go for a deed-in-lieu, you should submit a written offer of such a conveyance to the lender. This written statement acts as an evidence of the fact that you can enter into a negotiation with your lender. The statement also proves that you have agreed for the deed-in-lieu process at your own will and not under compulsion from the lender.
You can then negotiate with the lender and then reach a final agreement.
Hope this will serve your purpose.
Thanks,
Sara.
My grandmother passed away and had no living will, no life insurance, no money of any kind to be left for final expenses. I was living with her to care for her. Now that she's gone, I know I am not financialy responsible for the home, but how long do I have before the mortgage company kicks me out? How do I pay for final expenses? Any advice would be appreciated.
Hi
Since you're not on the loan, you're not liable to repay it. I don't think you're entitled to pay for any expenses for the house which you do not legally own. You can simply walk away from the property and the mortgage company will foreclose on it to satisfy the outstanding loan balance. The foreclosure procedure usually takes time. It can even take upto 6-12 months. So, you still have a few months before the mortgage company sends you a legal notice to vacate the property.
Since you're not on the loan, you're not liable to repay it. I don't think you're entitled to pay for any expenses for the house which you do not legally own. You can simply walk away from the property and the mortgage company will foreclose on it to satisfy the outstanding loan balance. The foreclosure procedure usually takes time. It can even take upto 6-12 months. So, you still have a few months before the mortgage company sends you a legal notice to vacate the property.