Posted on: 27th Sep, 2006 07:51 pm
Hello. Im writing this on behalf of my father whose condition is very serious and will be unable to work anytime soon.
My father was the only source of income to pay the mortgage, howerver at this situation we are about 25 days behind with our house mortgage payments. Actually we have 2 mortgages on our house. We never were late with our payments except when our father was diagnosed with serious health problems (in fact the doctor says he wont be able to hold more than 2-4 months).. so I'd like to ask couple of questions..
1. My mother doesnt work, her name is on the title of the house, but her name is not on the mortgage. Will she still be responsible for the mortgage after my father passes away? If yes, can we remove her name in a reasonable amount of time from the title? Will she still be responsible after her name is removed from the title?
I must add we DONT want to keep the house. If we could we would give the house to the bank tomorrow and move out the very same day.. anyway;
2. Ive also read some stuff about dead-in-lieu foreclosure. Is there a way to apply for this kind of foreclosure? I called the first mortgage lender and they told me that the normal foreclosure process starts after payments are 3 months behind. Howerver this generates huge stress on our family. I'd rather have deed in lieu done and move on with our lives ASAP.
3. Also when I called the first mortgage lender (wamu) they told me they will send me some kind of packet(forms?) to fill out. When I asked them how is this gonna help us I didnt receive an answer. Any idea what that could be?
4. Lets say the actual foreclosure takes place. We get evicted and we didnt pay mortgage for lets say 6 months. Are we still gonna be responsible to pay for that 6 months? What about other foreclosure fees? Will this be decided by the court (Im assuming they whole foreclosure process takes place in the court) or by the lender? Will they consider my father illness and our willingess to move out from the house? Also, since we have no money to pay for mortgage we wont have money to pay for any additional fees as well, will the lender take away our personal things (cars, furnitures, tv or access our bank accounts and take away last savings) to cover the outstanding debt?
Sorry for so many questions. We will be going with this questions to the 2 lawyers as well but its good to hear other people's opinions as well. thanks guys.
My father was the only source of income to pay the mortgage, howerver at this situation we are about 25 days behind with our house mortgage payments. Actually we have 2 mortgages on our house. We never were late with our payments except when our father was diagnosed with serious health problems (in fact the doctor says he wont be able to hold more than 2-4 months).. so I'd like to ask couple of questions..
1. My mother doesnt work, her name is on the title of the house, but her name is not on the mortgage. Will she still be responsible for the mortgage after my father passes away? If yes, can we remove her name in a reasonable amount of time from the title? Will she still be responsible after her name is removed from the title?
I must add we DONT want to keep the house. If we could we would give the house to the bank tomorrow and move out the very same day.. anyway;
2. Ive also read some stuff about dead-in-lieu foreclosure. Is there a way to apply for this kind of foreclosure? I called the first mortgage lender and they told me that the normal foreclosure process starts after payments are 3 months behind. Howerver this generates huge stress on our family. I'd rather have deed in lieu done and move on with our lives ASAP.
3. Also when I called the first mortgage lender (wamu) they told me they will send me some kind of packet(forms?) to fill out. When I asked them how is this gonna help us I didnt receive an answer. Any idea what that could be?
4. Lets say the actual foreclosure takes place. We get evicted and we didnt pay mortgage for lets say 6 months. Are we still gonna be responsible to pay for that 6 months? What about other foreclosure fees? Will this be decided by the court (Im assuming they whole foreclosure process takes place in the court) or by the lender? Will they consider my father illness and our willingess to move out from the house? Also, since we have no money to pay for mortgage we wont have money to pay for any additional fees as well, will the lender take away our personal things (cars, furnitures, tv or access our bank accounts and take away last savings) to cover the outstanding debt?
Sorry for so many questions. We will be going with this questions to the 2 lawyers as well but its good to hear other people's opinions as well. thanks guys.
Hi,
If the first mortgage lender is asking for a copy of the Sales Contract when you apply for deed-in-lieu, it means that they require proofs that you have bought the house from someone. They can only ask for a copy of the sale of your house after the deed-in-lieu is over.
If the first mortgage lender is asking for a copy of the Sales Contract when you apply for deed-in-lieu, it means that they require proofs that you have bought the house from someone. They can only ask for a copy of the sale of your house after the deed-in-lieu is over.
Hi Rem,
"If a Short Sale or Deed in Lieu is approved, no contributions or credits will be given to any junior liens."
Yes, the junior lien here indicates your second mortgage. By this statement, the lender means to say that even if there is a short sale or deed in lieu, you need to pay off the first debt prior to clearing the second loan. This is because the second loan is subordinate to that of the first.
God bless you
Samantha.
"If a Short Sale or Deed in Lieu is approved, no contributions or credits will be given to any junior liens."
Yes, the junior lien here indicates your second mortgage. By this statement, the lender means to say that even if there is a short sale or deed in lieu, you need to pay off the first debt prior to clearing the second loan. This is because the second loan is subordinate to that of the first.
God bless you
Samantha.
Hi Rem,
If you do a short sale, you will be able to sell off your house at a price lower than what you owe. So, the first lender has to forgive a part of your debt. Therefore, you should make arrangements to repay the second loan. But if you apply for a deed in lieu with the first lender, he will sell off the property at a certain price so that he can retrieve maximum of what he owes. So, you need to talk to the second lender regarding payments and the deed in lieu or the short sale that you are aiming at.
Thanks,
Sara.
If you do a short sale, you will be able to sell off your house at a price lower than what you owe. So, the first lender has to forgive a part of your debt. Therefore, you should make arrangements to repay the second loan. But if you apply for a deed in lieu with the first lender, he will sell off the property at a certain price so that he can retrieve maximum of what he owes. So, you need to talk to the second lender regarding payments and the deed in lieu or the short sale that you are aiming at.
Thanks,
Sara.
You guys are so helpfull, thank you all. I feel more confident about this stuff.
One more question bothers me though; is my mother a mortgage co-borrower? Her name is not on the monthly mortgage statements, but her name is on the house title. Also at the time we were buying the house she didnt have sufficient credit history and didnt work so I see no reason why she would be a co-borrower.
Thanks.
One more question bothers me though; is my mother a mortgage co-borrower? Her name is not on the monthly mortgage statements, but her name is on the house title. Also at the time we were buying the house she didnt have sufficient credit history and didnt work so I see no reason why she would be a co-borrower.
Thanks.
Hi,
You are quite right. As your mother only had her name on the title and not on the mortgage papers, she is not a co-borrower for the mortgage.
As her credit was not good may be because of that she was not included in the mortgage.
Thanks
Maclaurin
You are quite right. As your mother only had her name on the title and not on the mortgage papers, she is not a co-borrower for the mortgage.
As her credit was not good may be because of that she was not included in the mortgage.
Thanks
Maclaurin
Hi Rem,
Your mother isn't a co-borrower as she does not have her name on the mortgage note. But her name is on title. So in case the primary borrower does not make payments, the lender may demand it from your mother. This is because she has the ownership rights on the property for which the lender has offered the loan and he would surely like to get it back with interest.
One more thing Rem, just a suggestion from my end. I find you have a lot of doubts and you are eager to clear them. Then why not join this Community. It will help you to get regular updates on various mortgage related issues so that you can carry on well.
Thanks,
Sara
Your mother isn't a co-borrower as she does not have her name on the mortgage note. But her name is on title. So in case the primary borrower does not make payments, the lender may demand it from your mother. This is because she has the ownership rights on the property for which the lender has offered the loan and he would surely like to get it back with interest.
One more thing Rem, just a suggestion from my end. I find you have a lot of doubts and you are eager to clear them. Then why not join this Community. It will help you to get regular updates on various mortgage related issues so that you can carry on well.
Thanks,
Sara
Hi! After reading all the posts, please tell us what the house is worth, and how much is still owed on it. A home sale can pay all debts -- will you be renting?
Don't worry about foreclosure -- you can always have someone rent the house to pay ALL the bills, including taxes, water and electricity. You may even make some extra money monthly to help pay rent for Mom.
Don't worry about foreclosure -- you can always have someone rent the house to pay ALL the bills, including taxes, water and electricity. You may even make some extra money monthly to help pay rent for Mom.
http://www.aaronfinancial.net/about.htm
1-800-768-1616
You do not have to own land to refinance your home!
We also finance private sales of mobile homes - from individual to individual. Call us for more information on our unique approach to buying or selling a used manufactured/mobile home.
1-800-768-1616
You do not have to own land to refinance your home!
We also finance private sales of mobile homes - from individual to individual. Call us for more information on our unique approach to buying or selling a used manufactured/mobile home.
how common do lenders pursue the deficiency amount in cases of "deed in lieu of foreclosure" and under what circumstances?
Hi Boomer,
Welcome to our forums.
When the lender accepts a deed-in-lieu, he loses the right to recover the deficiency. In fact, the borrower benefits from the deed-in-lieu considering the fact that he does not have to pay the outstanding debt and his credit score is also not affected as hard as in a foreclosure. But in most cases, a lender accepts deed-in-lieu when there are no liens on the property.
In general, lenders hardly allow you to go for the process. Instead, he may suggest the borrower to go for a short sale of the home with the help of a real estate broker. If the lender anticipates that he would not be getting enough money to recover his investment through deed-in-lieu, he would suggest that the borrower try out with a short sale.
Good luck
Welcome to our forums.
When the lender accepts a deed-in-lieu, he loses the right to recover the deficiency. In fact, the borrower benefits from the deed-in-lieu considering the fact that he does not have to pay the outstanding debt and his credit score is also not affected as hard as in a foreclosure. But in most cases, a lender accepts deed-in-lieu when there are no liens on the property.
In general, lenders hardly allow you to go for the process. Instead, he may suggest the borrower to go for a short sale of the home with the help of a real estate broker. If the lender anticipates that he would not be getting enough money to recover his investment through deed-in-lieu, he would suggest that the borrower try out with a short sale.
Good luck
I'm going to do a deed-in-lieu but I have a 2nd mortgage. How does it effect the second?
i am upside down on my mortgage and I'm thinking about just leaving my house and letting the mortgage co have it, will I be sued by the mortgage co
Hi Anne,
Since your house is upside down, there will be a deficiency from the sale of your house if the mortgage company forecloses your property. They can come after you to collect the deficiency and can get a judgment against you. So, it is not a very good idea to walk away from the property. Instead, you can request your lender to do a deed in lieu (DIL) of foreclosure. The mortgage company is unlikely to sue you for the deficiency in case of a DIL.
Since your house is upside down, there will be a deficiency from the sale of your house if the mortgage company forecloses your property. They can come after you to collect the deficiency and can get a judgment against you. So, it is not a very good idea to walk away from the property. Instead, you can request your lender to do a deed in lieu (DIL) of foreclosure. The mortgage company is unlikely to sue you for the deficiency in case of a DIL.
My husband and I are separating. I just found papers where he is planning to do a deed in lieu of foreclosure. He is on the mortage (alone) but both of us are on the title. Can he do this without my signature, since I am on that title??
Hi Guest,
As the property is in your name as well, your husband will not be able to transfer it to the lender without your signature.
As the property is in your name as well, your husband will not be able to transfer it to the lender without your signature.