Posted on: 08th Nov, 2007 10:56 am
I purchased my condo in late 2005. My luck, the market took a big dive. I've had it for sale with a realtor since I lost my job in May of this year. Not even a phone call. I haven't been able to find another job therefore, I need to relocate. I am currently living off of unemployment which will run out very soon. I can't afford to keep the condo. Would a Deed in Lieu be a good option for me? I'm in Michigan.
hello sadbuttrue,
since the condo has been on the market for several months with no offer then, i suppose, a short sale will also be difficult.
if you need to relocate, you should first talk to your lender about the deed in lieu and see if he agrees to accept that.
is there a second mortgage on your property?
there is another option that you may try, if you put up the house for rent. it may work for some time but if you are relocating permanently then you won't benefit much.
since the condo has been on the market for several months with no offer then, i suppose, a short sale will also be difficult.
if you need to relocate, you should first talk to your lender about the deed in lieu and see if he agrees to accept that.
is there a second mortgage on your property?
there is another option that you may try, if you put up the house for rent. it may work for some time but if you are relocating permanently then you won't benefit much.
jenkin7 made some good points...I would just add, that if you are able to perform a Deed in lieu, then you should find some money to have an attorney review it before you sign. I'm not sure about MI laws, but in most areas, the DIL will stop any further collection efforts by the lender if they are unable to get all their money back after they sell the property. Spending a couple hundred dollars could save you thousands by having an attorney's help...
I would also advise against renting it if you are having financial problems. Getting renters in there that don't pay just opens up another can of worms.
I would also advise against renting it if you are having financial problems. Getting renters in there that don't pay just opens up another can of worms.
Yes James, you are correct. If the lender accepts the deed in lieu, he won't be able to seek a deficiency judgement and that is the reason why they generally don't want to accept it.
Putting up rent is not a permanent solution but it could have been one of the options to run the monthly mortgage payments.
Putting up rent is not a permanent solution but it could have been one of the options to run the monthly mortgage payments.
If you dont see yourself being able to afford the payments in the near future then I would suggest looking at options that would release you from this obligation. The first option could be a short sale. This is where the lender accepts a payoff that is lower than actually owed. They will only consider this when the you have a buyer that is willing to pay market value for the home. This way, you wont have a foreclosure on your record. A deed in leiu of foreclosure could be another option. Please call your lender to discuss these and other options that they may have available to you.