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Should my husband and I do a died in lieu or continue to try for a shortsale?

Posted on: 03rd Dec, 2008 03:44 pm
Should my husband and I do a died in lieu or continue to try for a shortsale? ...My husband and I bought a house four years ago when the community was brand new. By the time the house was finished my husband had a job change and we had to move. We have never lived in the house, but have tried a couple of renters that did not work out. We have been trying to sell the house again since July with not anyone even looking. We are not at the end of our savings. We are considering a died in lieu but are worried about how it will affect our credit. We both have excellent credit scores and this would be our first black mark of any sort. We would like to try to buy a house in about 18 months to two years when our rental contract where we are currently living runs out. Any suggestions on what we should do?
Posted on: 03rd Dec, 2008 09:03 pm
Hi vandykecathy

Keeping in mind the impact on the credit score, it is better to go for a short sale. Though the deficient amount is forgiven in deed in lieu foreclosure, losing 250 points from your credit score is not a good option keeping in mind today's market situation.

Thanks.
Posted on: 04th Dec, 2008 02:05 am
Correction: Your deficient amount can be forgiven for a short sale as well. You may have to pay a tax penalty, but you don't always have to pay the deficient amount.
Posted on: 03rd Dec, 2009 08:03 am
Can a died en liue affect my Series 6 License?
Posted on: 10th Mar, 2010 05:33 pm
Hi zhafiro,

You get the series 6 license when you pass the Investment Company/Variable Contracts Products Limited Representative (Series 6) exam. It has nothing to do with your credit score. You do a deed in lieu in order to avoid foreclosure and it does affect your credit negatively. But the deed in lieu or your bad credit does not affect your series 6 license in any way.
Posted on: 10th Mar, 2010 08:49 pm
I'm in the process of doing a shortsale and was looking at Died of lieu instead.
does anyone know what happens to your second in a Died of Lieu? Bank of America sent my second to a company called Real time Solutions and they are trying to come after me allot of $.
Posted on: 19th Nov, 2010 03:47 pm
hi jello,

not all second mortgage lenders accept deed in lieu of foreclosure. your second lender has sold off your mortgage account to a collection agency who are harassing you for the payments. you will have to negotiate with that collection agency so that it gives you a payment plan to pay off the dues.

thanks
Posted on: 19th Nov, 2010 11:20 pm
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