Posted on: 06th Dec, 2008 05:11 pm
I already moved out of my home. The home is listed for sale for 320,000. First mortgage is for 190K, 2nd mortgage is for 53K. After 90 days, not even one looker. Willing to take anything, or turn it in as I've already walked away. Three months behind on mortgage.
Can I do a Deed in Leui?
Would I do it with the first or second leinholder?
If I do it on the first leinholder, am I still responsible for the debt on the 2nd?
Would it be better to let them foreclose? Why?
Our other debts are being paid and current...don't want bankruptcy, or should I reconsider?
Can I do a Deed in Leui?
Would I do it with the first or second leinholder?
If I do it on the first leinholder, am I still responsible for the debt on the 2nd?
Would it be better to let them foreclose? Why?
Our other debts are being paid and current...don't want bankruptcy, or should I reconsider?
hi assemblyofgod!
welcome to forums!
as you are already behind on mortgage payments, you can definitely apply to the lender for a deed in lieu. but it will be totally the discretion of the lender to accept it or not. i think a deed in lieu with the first lender will be better. this is because, the first lender will include a non-merger clause with the deed in lieu which will prevent the second lender from taking any action against the first lender. the first lender will forgive the deficient amount, if any, resulting from the sale. as far as the second lender is concerned, he may charge off your dues. this means he will sell off your mortgage to a collection agency who will in turn collect the dues from you.
yes, if you are doing a deed in lieu foreclosure, you will be responsible for paying the second mortgage. i don't think a foreclosure will be a good option for you. it will badly affect your credit. if a deed in lieu foreclosure works for you, i don't think you should try for bankruptcy.
feel free to ask if you have further queries.
sussane
welcome to forums!
as you are already behind on mortgage payments, you can definitely apply to the lender for a deed in lieu. but it will be totally the discretion of the lender to accept it or not. i think a deed in lieu with the first lender will be better. this is because, the first lender will include a non-merger clause with the deed in lieu which will prevent the second lender from taking any action against the first lender. the first lender will forgive the deficient amount, if any, resulting from the sale. as far as the second lender is concerned, he may charge off your dues. this means he will sell off your mortgage to a collection agency who will in turn collect the dues from you.
yes, if you are doing a deed in lieu foreclosure, you will be responsible for paying the second mortgage. i don't think a foreclosure will be a good option for you. it will badly affect your credit. if a deed in lieu foreclosure works for you, i don't think you should try for bankruptcy.
feel free to ask if you have further queries.
sussane