Posted on: 03rd May, 2011 10:43 am
Hi-I am considering applying for deed in lieu, but have a Heloc (equity loan) also. Will that prevent me from getting a DIL, if all else works out with hardship, income, assets, etc? I am divorced and this house that I am responsible for, is bankrupting me and I am 60 and can't find good paying job up here in northwoods of Wi. It is my premary residence and I want to walk away .....I think this is a recourse loan and I did not qualify for modification....I am scared, but can't continue on like this....how do I get replies? On email? or do I have to somehow find this page again? I appreciate any help given....thank you kindly,J
P.S.
I have not paid 1, now will be 2 months of payments as that's the only way they will talk to you about default options and understand there are tax and credit implications but I need to get out of this-my house has been on the market for 2 years and I can't afford to drop the price much and this is a stagnant recreational market....everyone looking only for "deals" up here...help
P.S.
I have not paid 1, now will be 2 months of payments as that's the only way they will talk to you about default options and understand there are tax and credit implications but I need to get out of this-my house has been on the market for 2 years and I can't afford to drop the price much and this is a stagnant recreational market....everyone looking only for "deals" up here...help
Hello Sir,
I understand your situation. Do you have any equity in the property? If you do, lower it to what ever you can to unload the property. If you are upside down on your home, then if you are in a recourse state, then the lender can come after you for a deficiency judgement. They cant collect if you have nothing. If this was my home, I would find out the value of the home, and do whatever it takes to get out from it via a regular sale. If that wont work, try to get the bank to do a short sale, where they agree to payoff your loan for less than you owe. The other option is to talk to the bank about a Deed in Lieu. Get an appraisal and find out your concrete value, if you have some equity, tell the bank they can have it, you just need out. If they house is upside down, and you have no other choice, take the deed in lieu, and deal with the judgement later. The IRS has exemptions for tax purposes on your loss, so consult a cpa once final. If the lender accepts the DIL, then the heloc would be gone. Then they might come after for Deficiency. Good luck.
I understand your situation. Do you have any equity in the property? If you do, lower it to what ever you can to unload the property. If you are upside down on your home, then if you are in a recourse state, then the lender can come after you for a deficiency judgement. They cant collect if you have nothing. If this was my home, I would find out the value of the home, and do whatever it takes to get out from it via a regular sale. If that wont work, try to get the bank to do a short sale, where they agree to payoff your loan for less than you owe. The other option is to talk to the bank about a Deed in Lieu. Get an appraisal and find out your concrete value, if you have some equity, tell the bank they can have it, you just need out. If they house is upside down, and you have no other choice, take the deed in lieu, and deal with the judgement later. The IRS has exemptions for tax purposes on your loss, so consult a cpa once final. If the lender accepts the DIL, then the heloc would be gone. Then they might come after for Deficiency. Good luck.