Posted on: 08th Apr, 2010 07:54 am
We are upside down $135,000 in southern FL. Holding 2 mortgages. Wife and I have good jobs but would like to move to another state for better jobs. What's the best way to get out of this house without worrying about having lender come after us for a deficiency judgement?
you can apply for a deed in lieu of foreclosure with your lender in order to get rid of the property. if the lender accepts your request, you will not be liable for deficient balance for the first mortgage resulting from the sale of the property. as far as the second mortgage is concerned, you would be liable to pay it off. if you do not pay off the dues, the lender will have the rights to charge off the loan. you should also note that a deed in lieu of foreclosure will have negative affects on your credit score. it would get reduced by 250 points.