Posted on: 22nd Sep, 2011 08:24 am
what is the process for a deed in lieu of if i have a first mortgage and a home equity loan on my house ... i am retired and have tried for a year to sell my home.. i am no longer living in the house but i cant afford both houses now.
Hi malice!
Welcome to forums!
You can apply for a deed in lieu of foreclosure with your first lender. However, both the first lender as well as the home equity loan lender will have to agree to it. If both the lenders agree to it, then your request will go through. However, it will lower your credit scores by 250 points. Also, you may be liable for paying the deficient balance resulting from the home equity loan.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You can apply for a deed in lieu of foreclosure with your first lender. However, both the first lender as well as the home equity loan lender will have to agree to it. If both the lenders agree to it, then your request will go through. However, it will lower your credit scores by 250 points. Also, you may be liable for paying the deficient balance resulting from the home equity loan.
Feel free to ask if you've further queries.
Sussane
if you still have equity in the home then you may be able to refinance both existing loans into a single new loan. this may save you interest in the equity loan and make the total repayments more affordable.