Posted on: 13th Nov, 2008 07:38 pm
Im behind on my payments, I had my house on the market since Feb. people are not qualifyng for a loan, or the house is not being appraised high enough. I want to turn in my deed instead of foreclosure, my realtor saids to do a shortsale, I cant afford the payments anymore. Is it better to shortsale ? I need help>>> tahnks everyone
Hi charlescalifornia!
Did you speak to the lender about the deed-in-lieu foreclosure or short sale? It depends on the lender as to which one he will accept. It will be totally his discretion.
Both deed in lieu and short sale processes are similar. In both the cases, you will have to give the property to the lender and he will give you a note stating that the loan is paid off. Now he will try to sell the property in market and recover his debts. In most cases, the lenders have to sell the property at a lower amount. Thus, there remains a deficient amount. In case of a deed in lieu foreclosure, the lender forgives this deficient amount whereas in case of a short sale, the lender will ask you to pay it off.
If you go for a short sale, your credit score will go down by 75-100 points whereas in case of deed-in-lieu, the credit score will fall by 250 points. Keeping in mind this, it is better to go for a short sale.
Thanks
Did you speak to the lender about the deed-in-lieu foreclosure or short sale? It depends on the lender as to which one he will accept. It will be totally his discretion.
Both deed in lieu and short sale processes are similar. In both the cases, you will have to give the property to the lender and he will give you a note stating that the loan is paid off. Now he will try to sell the property in market and recover his debts. In most cases, the lenders have to sell the property at a lower amount. Thus, there remains a deficient amount. In case of a deed in lieu foreclosure, the lender forgives this deficient amount whereas in case of a short sale, the lender will ask you to pay it off.
If you go for a short sale, your credit score will go down by 75-100 points whereas in case of deed-in-lieu, the credit score will fall by 250 points. Keeping in mind this, it is better to go for a short sale.
Thanks