Posted on: 06th May, 2007 08:23 pm
Greetings,
I was wondering if I could get some advice on a truly horrible situation I am in. To give some background: I am Active Duty Military and spent 3 years on a special duty in Michigan (and purchased a home). I recieved orders and was forced to moove..I have been stationed in North Carolina since July 06. Our house in michigan has been on the market for 14 months now, and is sitting vacant. My wife and children remained in michigan to try to sell the house until December, and moved to NC in January. Since we moved, we have paid 10K in mortgage payments (we remain current, and have not missed a payment)...on top of that we have the house priced to take an additional 10K+ loss IF the house sells...Still no dice...What are my options?? To top it off, I am scheduled to deploy soon for an extended period of time and dont want to leave this headache on my family when I am gone. This is truly a nightmare..
All our lives we have remained debt free, and managed to put away some money..someting we have been very proud of on a military salary. All we have worked so hard for is dwindling away every month...Another question I have is would it be probable for the lender to approve a deed in leiu or short sale if I still have life savings in funds, etc??
Of course, the move was not my choice, but Uncle Sams. Unfortunately, there are no provisions/relief for situations like this in the military. We are making it now, but not sure how much longer I can "burn" $1000+ a month that I will never see again..
Please Help!
I was wondering if I could get some advice on a truly horrible situation I am in. To give some background: I am Active Duty Military and spent 3 years on a special duty in Michigan (and purchased a home). I recieved orders and was forced to moove..I have been stationed in North Carolina since July 06. Our house in michigan has been on the market for 14 months now, and is sitting vacant. My wife and children remained in michigan to try to sell the house until December, and moved to NC in January. Since we moved, we have paid 10K in mortgage payments (we remain current, and have not missed a payment)...on top of that we have the house priced to take an additional 10K+ loss IF the house sells...Still no dice...What are my options?? To top it off, I am scheduled to deploy soon for an extended period of time and dont want to leave this headache on my family when I am gone. This is truly a nightmare..
All our lives we have remained debt free, and managed to put away some money..someting we have been very proud of on a military salary. All we have worked so hard for is dwindling away every month...Another question I have is would it be probable for the lender to approve a deed in leiu or short sale if I still have life savings in funds, etc??
Of course, the move was not my choice, but Uncle Sams. Unfortunately, there are no provisions/relief for situations like this in the military. We are making it now, but not sure how much longer I can "burn" $1000+ a month that I will never see again..
Please Help!
Hi Guest,
The market situation is not really good and it is uncertain if you will be able to sell the house. It has been on the market for more than a year, but you have not received much offers. It is doubtful if you will get a good offer on the house until the market improves.
I think a deed in lieu will be a better option for you. This will help you to sign over the title to your lender, who will sell off the house to satisfy the mortgage lien. Chances are also there that if there is any deficiency from the deed in lieu, it will be forgiven by the lender. This is unlikely in case of a short sale, where the lender will most probably come after you for the deficiency. However, both the deed in lieu and the short sale will affect your credit negatively.
The market situation is not really good and it is uncertain if you will be able to sell the house. It has been on the market for more than a year, but you have not received much offers. It is doubtful if you will get a good offer on the house until the market improves.
I think a deed in lieu will be a better option for you. This will help you to sign over the title to your lender, who will sell off the house to satisfy the mortgage lien. Chances are also there that if there is any deficiency from the deed in lieu, it will be forgiven by the lender. This is unlikely in case of a short sale, where the lender will most probably come after you for the deficiency. However, both the deed in lieu and the short sale will affect your credit negatively.
I appreciate the feedback. I am going to give it a tru year and see where I am at that point. If no luck, then I will re evaluate the situation. I would hate to ruin my credit if I could save it somehow.
Thank you!
Thank you!
I have a 16 unit complex in Phoenix and want to dump it. But like everyone else I wonder if the lender will go after me. Now it is on market and I have a buyer who offered 300k but my loan amount is 500k. So it is SS.
If I go on DIL, does anybody know if the lender go after me?
If I go on DIL, does anybody know if the lender go after me?
hi fuchi,
if you go for a short sale, the lender has the rights to come after you for the deficient balance resulting from the sale of the property. however, if you go for a deed in lieu of foreclosure, the lender will not be able to come after you for the balance dues. he will forgive the balance dues resulting from the property sale.
thanks,
jerry
if you go for a short sale, the lender has the rights to come after you for the deficient balance resulting from the sale of the property. however, if you go for a deed in lieu of foreclosure, the lender will not be able to come after you for the balance dues. he will forgive the balance dues resulting from the property sale.
thanks,
jerry
Are you sure the lender won't come after me even the note is a commercial mortgage note? My sales agent said it might be a worst sinario if I go on DIL, paying the deficiency. I am very comfused!
Hi Fuchi,
As it is a deed in lieu of foreclosure on a commercial property, there are chances that the lender may come after you for the deficient balance resulting from the sale of the property.
Thanks
As it is a deed in lieu of foreclosure on a commercial property, there are chances that the lender may come after you for the deficient balance resulting from the sale of the property.
Thanks
So, If I go on a short sale, the lender will probably come after me. but DIL they won't. Is that right?
Welcome Fuchi,
You're correct. If you go for a short sale, the lender will be able to come after you for the balance amount resulting from the sale. On the other hand, if you go for a deed in lieu of foreclosure, the lender will forgive the balance dues.
You're correct. If you go for a short sale, the lender will be able to come after you for the balance amount resulting from the sale. On the other hand, if you go for a deed in lieu of foreclosure, the lender will forgive the balance dues.
According to my sales agent, at the end of close the sale, I am able to make a choice to
mark where I don't want to sell my complex if the lender agree not to pursue me.
If we don't come to agreement, the sale will be failed and I go for DIL.
That is my senario.
Do you think I should go on DIL right away, cancelling sort sale?
Thank you
mark where I don't want to sell my complex if the lender agree not to pursue me.
If we don't come to agreement, the sale will be failed and I go for DIL.
That is my senario.
Do you think I should go on DIL right away, cancelling sort sale?
Thank you
Hi fuchi,
You and the lender may come to an agreement regarding deficiency judgment. I would suggest you to apply for a short sale first and check out if the lender forgives the deficient balance. In case, the lender does not agree to forgive the balance dues, you can apply for a deed in lieu of foreclosure.
Thanks
You and the lender may come to an agreement regarding deficiency judgment. I would suggest you to apply for a short sale first and check out if the lender forgives the deficient balance. In case, the lender does not agree to forgive the balance dues, you can apply for a deed in lieu of foreclosure.
Thanks
I am trying to SS now. And if the lender doesn't agree to forgive the balance due, I will go for DIL.
I really appreciate your kindness.
I really appreciate your kindness.
Consider rent to own. Also, usually from my experience most lenders have u go through a short sale process before they even consider a deed in lieu. And to be considered I had to explain my hardships. Hope this information helps :x [/i]
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