Posted on: 22nd Dec, 2008 06:37 am
I have an 80/20 loan, and need to get out via foreclosure, deed in lieu or possible modification, but that's not likely.
I haven't seen anything anywhere about how to do a deed in lieu or foreclosure for that matter with a loan like this.
Any thoughts?
I haven't seen anything anywhere about how to do a deed in lieu or foreclosure for that matter with a loan like this.
Any thoughts?
hi stangmasterflash,
as far as i know, a deed in lieu foreclosure is possible in case of a 80/20 loan. you can approach the first lender for a deed in lieu foreclosure. if the first lender accepts the deed in lieu, then he will include a non-merger clause in the agreement which will not allow the second lender to object to the sale of the property. the first lender will sell off the property and recover the debts. if there is a deficient amount, it will be forgiven.
as far as the second lender is concerned, he might charge off the loan to a collection agency. this collection agency will in turn collect the dues from you. second mortgage charge off does not mean that the mortgage dues will be forgiven. know more about second mortgage charge-off from the information available here.
thanks
as far as i know, a deed in lieu foreclosure is possible in case of a 80/20 loan. you can approach the first lender for a deed in lieu foreclosure. if the first lender accepts the deed in lieu, then he will include a non-merger clause in the agreement which will not allow the second lender to object to the sale of the property. the first lender will sell off the property and recover the debts. if there is a deficient amount, it will be forgiven.
as far as the second lender is concerned, he might charge off the loan to a collection agency. this collection agency will in turn collect the dues from you. second mortgage charge off does not mean that the mortgage dues will be forgiven. know more about second mortgage charge-off from the information available here.
thanks