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Do I still have to pay the Mortgage in a Deed in Lieu sale

Posted on: 13th Feb, 2013 09:22 am
i own a 2nd property in the state of illinois, my sister and i are on the loan but the responsiblilty is really mine and my sister deserted the property a year ago, i was able to find a renter after investing thousands in repairs. i want to get rid of this property, what can i do. i retired 2 yrs ago, i live in another state and cannot afford the mortgage on the house even if i was to move back to ill. i attempted to refinance to get the mortgage lowered and was refused, i reqested a modification and was refused. i want to protect my 7.0+ credit score, and my banking assets, what can i do?
Did you try for FHA refinance loans? If not, then try to apply for that. This may solve your problem. Or if you want to sell your property through Deed in Lieu, then your credit score will drop.
Posted on: 13th Feb, 2013 09:51 am
hi vickey!

welcome to forums!

if you go for a deed in lieu of foreclosure, then the lender will foreclose and sell off the property but you won't be liable for paying the deficient balance resulting from the sale of the property. however, it should also be noted here that a deed in lieu of foreclosure will have a severe negative impact on your credit scores. it may lower your scores by around 250 points.

feel free to ask if you've further queries.

sussane
Posted on: 13th Feb, 2013 06:55 pm
As you have found a renter, you can rent your property. You can use the amount of rent for paying your mortgage dues.
Posted on: 13th Feb, 2013 10:19 pm
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