Posted on: 13th Dec, 2008 12:40 pm
i live in a market that has declined significantly. my home is worth at least 100,000+ less than the mortgage currently 249,000. i was working for countrywide/bofa as an appraiser and have now been let go due to a reduction in force. my husband has not had any financial income in over a year (he is also an appraiser). we can not afford our mortgage any longer and are just wanting out of the house all together. we have paid every payment on time and have tried to get help from the bank due to this hardship. we have been told the investor on our loan will not help us until we have missed 2 months of payments. we do not want to ruin our great credit but feel we have no other way out. we would like to give the home back (deed in lieu of foreclosure). but we don't know how that will effect our assets. is there a way of out of this?
Hi Shar!
Welcome to forums!
A lender will not accept an application for a deed in lieu, short sale or a loan modification until you have at least missed 2 payments. As far as short sale and deed in lieu is considered, it will definitely affect your credit.
A short sale will lower your credit by around 75-100 points whereas a deed in lieu will lower you credit by 250 points. Moreover you should also note that the lender will forgive the deficient amount if you are going for a deed in lieu. But you will have to pay taxes on that forgiven amount as the IRS will consider this as an income. I don't think a deed in lieu will anyway affect your assets. In case of short sale, you will have to pay the deficient amount to the lender.
To know more about deed in lieu, check out the following links:
Avoid Foreclosure with a Deed-in-lieu
How Deed in lieu of foreclosure affects credit score
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
A lender will not accept an application for a deed in lieu, short sale or a loan modification until you have at least missed 2 payments. As far as short sale and deed in lieu is considered, it will definitely affect your credit.
A short sale will lower your credit by around 75-100 points whereas a deed in lieu will lower you credit by 250 points. Moreover you should also note that the lender will forgive the deficient amount if you are going for a deed in lieu. But you will have to pay taxes on that forgiven amount as the IRS will consider this as an income. I don't think a deed in lieu will anyway affect your assets. In case of short sale, you will have to pay the deficient amount to the lender.
To know more about deed in lieu, check out the following links:
Avoid Foreclosure with a Deed-in-lieu
How Deed in lieu of foreclosure affects credit score
Feel free to ask if you have further queries.
Sussane
How much time does it take for a Deed In Lieu and how long do you have to leave the property?
It may take around 7-9 weeks to complete the deed in lieu process. Once the sale of the property is complete, you will get a 3-days notice to leave the property.