Posted on: 13th Jun, 2007 05:21 am
First, we live in Alabama. We have built a spec home at the beach in Florida. We cannot sell and have had no offers.
We have a first loan and a HELOC with the same bank located in Florida. We are using the HELOC (which is secured against the beach home) to make payments.
I have two primary questions...
We have a first loan and a HELOC with the same bank located in Florida. We are using the HELOC (which is secured against the beach home) to make payments.
I have two primary questions...
- How we should begin the process of trying to get a deed in lieu in this situation? Should I call the loan agent who brokered the deal to explain the situation to her or should I call the HELOC agent? They are both with the same bank but different branches
- Second, will my home in Alabama be protected against a deficiency in either loan on the florida home? We have appx $100K in equity on home in Bama and don't want to lose it.
You should call up the first lender and then apply for a deed in lieu. Also inform the second lender that you've applied for it. If you're going for a deed in-lieu, the lender's right to ask for the deficiency is waived. That's a good thing which on does not find in foreclosure.
Hi Guest,
"How we should begin the process of trying to get a deed in lieu in this situation? Should I call the loan agent who brokered the deal to explain the situation to her or should I call the HELOC agent? They are both with the same bank but different branches"
You need to contact the bank - the branch offering the first loan and submit your application for the deed-in-lieu. I don't think you need to contact the broker. Anyway, just follow the simple steps mentioned in a previous discussion on How to proceed for deed-in-lieu.
"Second, will my home in Alabama be protected against a deficiency in either loan on the florida home?"
You haven't taken the loans against your Alabama home, isn't it? so that home will be protected.
Keep in touch for further clarifications. :)
"How we should begin the process of trying to get a deed in lieu in this situation? Should I call the loan agent who brokered the deal to explain the situation to her or should I call the HELOC agent? They are both with the same bank but different branches"
You need to contact the bank - the branch offering the first loan and submit your application for the deed-in-lieu. I don't think you need to contact the broker. Anyway, just follow the simple steps mentioned in a previous discussion on How to proceed for deed-in-lieu.
"Second, will my home in Alabama be protected against a deficiency in either loan on the florida home?"
You haven't taken the loans against your Alabama home, isn't it? so that home will be protected.
Keep in touch for further clarifications. :)
"How we should begin the process of trying to get a deed in lieu in this situation? Should I call the loan agent who brokered the deal to explain the situation to her or should I call the HELOC agent? They are both with the same bank but different branches"
HELOC is subordinate to the first loan so not much use contacting them. In foreclosure the first loan is paid off first and if the second lien holder wants to foreclosure he will have to pay off the first loan. This is the reason everyone has said that you need to contact the person dealing with the first loan.
Miller
HELOC is subordinate to the first loan so not much use contacting them. In foreclosure the first loan is paid off first and if the second lien holder wants to foreclosure he will have to pay off the first loan. This is the reason everyone has said that you need to contact the person dealing with the first loan.
Miller
a dil will affect your credit score so try to avoid it if possible by try to select any loss mitigation option that would be possible.
it can be that bank will agree to change the loan terms on your first mortgage so that you can afford the payments by extending the total term of the loan.
what i am trying to say is that instead of directly requesting a deed in lieu, first tell them about the problem you have and see if they agree to any loss mitigation plan. if they do not agree then talk about giving up the home through dil.
it can be that bank will agree to change the loan terms on your first mortgage so that you can afford the payments by extending the total term of the loan.
what i am trying to say is that instead of directly requesting a deed in lieu, first tell them about the problem you have and see if they agree to any loss mitigation plan. if they do not agree then talk about giving up the home through dil.