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can I do a deed in lieu for a rented house?

Posted on: 06th Dec, 2008 07:35 pm
in residence inNew Orleans many years untill evacuated in '05. couldn't return, bought a house in Mississippi, finally rented the N.O. house, currently rented. 2 0ut of 5 yr rule ended Dec 1 '08. can't make payents, but still current. It has been on the market for 2 years and NO offers at bare minimum to avoid owing money at closing.
Can I do a deed in lieu?
I have a 2nd mtg in form of Line of Credit. Will the deed in Lieu also cancel the 2nd?
Hi bsegard!

Welcome to forums!

Yes, you can try for a deed in lieu foreclosure for the rented property. But as you have mentioned that you are still current on payments, I don't think the lender will accept your offer. Normally lenders agree to a deed in lieu foreclosure only when you are 2-3 months late on payments.

Though you do a deed in lieu foreclosure on the first, you will still be liable for paying the 2nd mortgage. A deed in lieu will not cancel your 2nd mortgage.

Feel free to ask if you have further queries.

Sussane
Posted on: 07th Dec, 2008 07:52 pm
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