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Company Loan Type APR Est. Pmt.

FL Chinese Drywall

Posted on: 16th May, 2009 07:10 am
My wife and I purchased a new home in South Florida in December 2006 for $908k. We learned in March 2009 that the home has Chinese Drywall in it, which explained why our family has had severe respiratory problems since moving in. We moved out and our living in a rental home and our lawyers have requested an abatement from the lenders (first and home equity totaling $860k) but they have not agreed so far. The home was worth about $725k before we found the defective drywall. Now it is unsaleable and unrentable. Assuming the lenders do not agree on an abatement, we think our best choice is a deed in lieu. Do you agree? Do we have other options? We had 800+ FICO scores before we stopped paying our mortgage two months ago.
Yes probably you can do Deed in Lieu, but the lender needs to agree and accpet it.

And it may complicate the thigns when you two loans and two lenders.
Posted on: 16th May, 2009 09:00 pm
Hi John,

In my opinion, deed in lieu is the best option for your situation. However, you should note that you need to convince your lender for a deed in lieu. It is the discretion of the lender to accept or reject your offer.

I appreciate the fact that you have a 800+ FICO score. However, if you file deed in lieu, then your credit score will get lowered by at least 250 points.

Thanks
Posted on: 16th May, 2009 10:13 pm
Most of the first lenders do nto agree on Deed in Lieu. It leaves the withthe second loan, which they will be responsible to pay.
Posted on: 18th May, 2009 07:33 pm
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