Posted on: 09th Dec, 2008 04:41 pm
I live in Las Vegas and about 4 months ago my wife and myself was able to close on our 1st brand new home. Only because we were able to lease out our current home where we approved to get another. We have been paying the 500.00 a month difference between our rental property note and the rent we were recieving. The renters are now not paying, we cannot afford another 2k a month to meet the other note and there is no way I can get it re rented in time, it was for sure 2yr lease now its nothing. We dont want to give it up but theres no money. The house is Mint and worth about 80k less than the note. Can we do a DIL and not get a judgement against our new home? Can I protect it with a land trust or transfer it into a LLC?
Hi sandstorm,
You can speak to the lender and check both the options of a short sale and deed in lieu foreclosure. Both of them are similar processes where in you will give away the property to the lender and the lender will sell it in the market to recover the debts. If there is a deficient amount, the lender will forgive it in the case of a deed in lieu but in case of short sale, you will have to pay it to the lender.
As far as transferring the property to a LLC is concerned, I think the lender can consider this as a fraudulent one and can penalize you if he comes to know.
Thanks,
Jerry
You can speak to the lender and check both the options of a short sale and deed in lieu foreclosure. Both of them are similar processes where in you will give away the property to the lender and the lender will sell it in the market to recover the debts. If there is a deficient amount, the lender will forgive it in the case of a deed in lieu but in case of short sale, you will have to pay it to the lender.
As far as transferring the property to a LLC is concerned, I think the lender can consider this as a fraudulent one and can penalize you if he comes to know.
Thanks,
Jerry
Well they still cansell off the loan to a collector. This will also start a lein enviroment correct? What If I do a land trust is this fraudulent?
If the lender is not able to recover the debts, then he can sell off the mortgage to a collection agency or place a lien on the property.