Posted on: 24th Mar, 2010 05:31 pm
Its going on 6 mts i havent paid my mortgage the mortgage company is telling me try to sell or do a died in lieu. My house is in foreclosure i got served papers already but thats all.dont know what to do and want to know whats the best option i have. Need to know more information about a died in lieu but my mortgage company gives me the run around. I have a family and worry how long i have and do thet give me time to move out and if i sell what happens to rest of the balance and very confused tks
Hi jmp,
Both foreclosure and a deed in lieu will have similar negative effects on your credit report. Both of them will reduce your credit score by 250 points. Also, it will stay in your credit report for 7 years and you won't be able to qualify for a loan in the next 3-4 years. However, the main difference between the two lies in the fact that in a deed in lieu of foreclosure, you won't be liable for paying the deficient balance resulting from the sale of the property. In case of foreclosure, you would be liable to pay it off.
I personally feel that a deed in lieu is a better option to get rid if the property as you won't be liable for paying the deficient balance.
Both foreclosure and a deed in lieu will have similar negative effects on your credit report. Both of them will reduce your credit score by 250 points. Also, it will stay in your credit report for 7 years and you won't be able to qualify for a loan in the next 3-4 years. However, the main difference between the two lies in the fact that in a deed in lieu of foreclosure, you won't be liable for paying the deficient balance resulting from the sale of the property. In case of foreclosure, you would be liable to pay it off.
I personally feel that a deed in lieu is a better option to get rid if the property as you won't be liable for paying the deficient balance.
THANK YOU FOR YOUR ADVICE BUT WHEN SHOULD I DO THE DIED IN LIEU BECAUSE MY MORTGAGE COMPANY WANTS ME TO SELL IT FIRST THAN DO THE DIED IN LIEU. THE POSITIVE IS MY HOUSE WONT SELL AND I CAN STAY RENT FREE
deed in lieu is probably your best option idf the lender will aceept it. Not a great solution I'll grant you, but the best of bad options.