Posted on: 24th Oct, 2009 11:13 am
I have two lot loans in FL. Owe about 65,000 on each but the land is only worth about 20,000. 65,000 on each still owed. During this time I have also run into financial difficulties. What can I do about these lot loans? Let the bank foreclose? What will happen? Will I still owe the money if they foreclose? I would love some suggestions and info on impacts.
Welcome bubbalou,
If you let the bank foreclose the property, then it would have a bad impact on your credit report. Your credit score would be reduced by 250 points and you would not be able purchase any property in the next 3-4 years. Moreover, it would remain on your credit report for the next 7 years. You would also be responsible for paying the deficient amount resulting from the sale of the property.
In my opinion, you can have a word with your lender and apply for a deed in lieu of foreclosure. This will help you in getting rid of the property as the lender would sell them to recover the dues. Also, you won't have to pay the deficient amount resulting from the sale of the property.
If you let the bank foreclose the property, then it would have a bad impact on your credit report. Your credit score would be reduced by 250 points and you would not be able purchase any property in the next 3-4 years. Moreover, it would remain on your credit report for the next 7 years. You would also be responsible for paying the deficient amount resulting from the sale of the property.
In my opinion, you can have a word with your lender and apply for a deed in lieu of foreclosure. This will help you in getting rid of the property as the lender would sell them to recover the dues. Also, you won't have to pay the deficient amount resulting from the sale of the property.
Thank you Adonis. I am going to call the bank today. Are you or is anyone else aware of any govt programs to assist in reducing the principle balance of the loan?
Thanks again.
Thanks again.
Hi Bubbalou!
Welcome back to forums!
If you want to save the property, then you can apply for a loan modification with your lender. He will judge your situation and then agree to you loan modification. You can negotiate with your lender for a principle reduction or the lender may even reduce the interest rate to pay off the dues.
Feel free to ask if you've further queries.
Sussane
Welcome back to forums!
If you want to save the property, then you can apply for a loan modification with your lender. He will judge your situation and then agree to you loan modification. You can negotiate with your lender for a principle reduction or the lender may even reduce the interest rate to pay off the dues.
Feel free to ask if you've further queries.
Sussane
I bought a lot in NC and now live in Wisconsin. I am "upside down" now and am facing forclosure. I have requested the loaner (Wells Fargo) to accept a deed in lieu of forclosure and they have denied that request. I am living on social security do I have any options?
Hi sallie,
You should once again request the lender for a deed in lieu of foreclosure. However, if the lender does not agrees to your request, then the lender will foreclose the property and recover his dues. He has the rights to come after you for the balance dues resulting from the property sale. However, the lender won't be able to garnish your social security income.
Thanks
You should once again request the lender for a deed in lieu of foreclosure. However, if the lender does not agrees to your request, then the lender will foreclose the property and recover his dues. He has the rights to come after you for the balance dues resulting from the property sale. However, the lender won't be able to garnish your social security income.
Thanks