Posted on: 22nd Sep, 2008 01:03 pm
Allow me to provide some background: I live in NC and four and a half years ago my family and I moved across state and purchased a home in the new location, we tried to sell our previous home (double-wide mobile home) with no success, so we rented it out for a few years, our last renters moved out and have none to replace them, trying to sell it now, we cannot afford two mortgage payments and have been researching options should we not sell it soon, I have asked the lender if they would accept a lower pay-off to which they denied, within a month or so we will not be able to pay anymore on it and I was wondering if deed-in-lieu-of forclosure may be the best option for me. Any assistance would be greatly appreciated. God bless.
Hi godchaser49 !
Welcome to the forums!
Yes, you can go for a deed in lieu foreclosure. Through this, you will have to give the property back to the lender and the lender gives you a note stating that you have paid the loan. Now the lender will sell the property to recover the loan. However in case of such type of properties, the lenders have to sell the property at a low price. So there remains a gap between the due amount and the recovered amount which is known as deficiency. Normally the lenders forgive this deficient amount but the tax department considers this as an income and you will have to pay the tax.
Feel free to ask if you have further queries.
Sussane.
Welcome to the forums!
Yes, you can go for a deed in lieu foreclosure. Through this, you will have to give the property back to the lender and the lender gives you a note stating that you have paid the loan. Now the lender will sell the property to recover the loan. However in case of such type of properties, the lenders have to sell the property at a low price. So there remains a gap between the due amount and the recovered amount which is known as deficiency. Normally the lenders forgive this deficient amount but the tax department considers this as an income and you will have to pay the tax.
Feel free to ask if you have further queries.
Sussane.
Thanks for your reply. Few more questions about it; at what point do I submit that request (I'm not behind on payment yet but will be next month) and do I need an attorney to help with it? Also, does it matter that it's a mobile home and not a stick-built home? Thanks again.
Hi Guest!
Welcome to forums!
You can go for a deed in lieu when you are unable to pay the loan. It is always better to consult an attorney who can help you with the legal proceedings of the matter and can informs you if there are any drawbacks. I do not think there will be any difference whether it is a mobile home and a stick-built home.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
You can go for a deed in lieu when you are unable to pay the loan. It is always better to consult an attorney who can help you with the legal proceedings of the matter and can informs you if there are any drawbacks. I do not think there will be any difference whether it is a mobile home and a stick-built home.
Feel free to ask if you have further queries.
Sussane