Posted on: 11th Aug, 2007 12:22 pm
iwe have a mortgage 80/20 arm for 3 yrs.. we have come thru financial disaster, we are 3 mos in arrears i would like to know if we could somehow refinance, quick claim, purchase this loan and put it under our business acct with our ein#.? pls advise. also, could we(if we have to )give the house back to litton loan in lieu of foreclosure? and if we do this will it show in the credit as foreclosure? and how long would we have to move out?
Hi Malena,
Once the balance on your two mortgages is less than the value of your home, you can refinance and pay off both the loans by using a single loan, significantly at a better rate.
But a quitclaim deed won't serve your purpose as this type of deed helps to transfer property ownership, not a loan.
And if you are unable to make the payments for the two loans, you can give the house to your lender by means of foreclosure. But in that case, it may affect your credit score negatively and it will remain on your credit report for 7 years.
Once the balance on your two mortgages is less than the value of your home, you can refinance and pay off both the loans by using a single loan, significantly at a better rate.
But a quitclaim deed won't serve your purpose as this type of deed helps to transfer property ownership, not a loan.
And if you are unable to make the payments for the two loans, you can give the house to your lender by means of foreclosure. But in that case, it may affect your credit score negatively and it will remain on your credit report for 7 years.
"We have a mortgage 80/20 ARM for 3 yrs.. we have come thru financial disaster,"
Has any equity developed in the house as it has been 3 years since the mortgage was taken? If there is some equity then look to refinance though it would be difficult as the loan is in default. Most lenders won't be willing to refinance because of the default status of the loan. Are both loans in default?
"I would like to know if we could somehow refinance, quick claim, purchase this loan and put it under our business acct with our EIN#.?"
1.
You will quit claim the house to whom? Quit claim is a property transfer deed which is used for transfer of property ownership but it does not transfer the mortgage. It would remain in your name until the new owner refinances it in his name.
2.
Putting the loan under your business account would also be difficult right now.
"Pls advise. Also, could we(if we have to )give the house back to Litton Loan in lieu of foreclosure? and if we do this will it show in the credit as foreclosure?"
You may talk with them about a deed in lieu. If they accept this option then you would be able to give the house back to them. But it will affect your credit score. Your score will be going down by quite a bit because of the dil.
Has any equity developed in the house as it has been 3 years since the mortgage was taken? If there is some equity then look to refinance though it would be difficult as the loan is in default. Most lenders won't be willing to refinance because of the default status of the loan. Are both loans in default?
"I would like to know if we could somehow refinance, quick claim, purchase this loan and put it under our business acct with our EIN#.?"
1.
You will quit claim the house to whom? Quit claim is a property transfer deed which is used for transfer of property ownership but it does not transfer the mortgage. It would remain in your name until the new owner refinances it in his name.
2.
Putting the loan under your business account would also be difficult right now.
"Pls advise. Also, could we(if we have to )give the house back to Litton Loan in lieu of foreclosure? and if we do this will it show in the credit as foreclosure?"
You may talk with them about a deed in lieu. If they accept this option then you would be able to give the house back to them. But it will affect your credit score. Your score will be going down by quite a bit because of the dil.
"and if we do this will it show in the credit as foreclosure?"
Instead of showing up as foreclosure it will appear as derogatory account on your credit report. But a dil will also hurt your score.
Instead of showing up as foreclosure it will appear as derogatory account on your credit report. But a dil will also hurt your score.
If you have waited until you are 3 months past due to ask these questions, then it is likely that you will end up 4 months past due before you begin to take any appropriate action.
Please discuss your situation with your lender at once to see if you can reach an amicable settlement quickly. Otherwise, you will lose the home one way or the other, and your credit will absolutely suffer, no matter if a foreclosure or deed in lieu.
The key thing is to not delay any longer.
Please discuss your situation with your lender at once to see if you can reach an amicable settlement quickly. Otherwise, you will lose the home one way or the other, and your credit will absolutely suffer, no matter if a foreclosure or deed in lieu.
The key thing is to not delay any longer.
I agree with Makerley. Contacting lender at the earliest would be the most important thing to do at this moment. The more you will delay available choices will start to close out.
Miller
Miller