Posted on: 29th Sep, 2008 11:20 am
Hello. My fiancee and I bought a modular home in 2005. We are in Boca Raton FL. We bought it at $150,000.00.(Land and Home) Well, he was laid off(He works construction) and we got behind. The mortgage co made me a deal, but we just received the total due in Oct. That is about $3000.00 more than they had said over the phone it would be. We cannot pay that nor can we afford the higher mortgage for 12 months to pay it off. And to top it off, I am being relocated to NY. We have the house on the market, but it has been appraised at just under $100,000.00
We are advertising it as a short sale, but I am curious as to what route other than forclosure would be best for us? We have heard to do a deed in Lieu. I am tired of fighting for a house we should not have had to pay so much for, but you live and learn. Any suggestions?
We are advertising it as a short sale, but I am curious as to what route other than forclosure would be best for us? We have heard to do a deed in Lieu. I am tired of fighting for a house we should not have had to pay so much for, but you live and learn. Any suggestions?
Hi Betsy!
Welcome to the Forums!
You have already listed the house for a short sale which is a good step. Are you getting buyers for your home? You can also try and rent your house and with the rents, you can pay off your debts.
If you are thinking in the lines of deed-in-lieu, then I will suggest you to talk to the lender. In the process of deed in lieu, you will have to return the house to the lender who will give you a note stating that you have cleared off the debts. Then the lender will try to sell the house in the market and recover his debts. In most of the cases, the lender cannot recover the full debt but the deficient amount is forgiven by them. This forgiven amount of debt is considered as an income and is taxable under the laws. However, in short sale, you will have to pay the deficient amount.
Feel free to ask if you have further queries.
Sussane
Welcome to the Forums!
You have already listed the house for a short sale which is a good step. Are you getting buyers for your home? You can also try and rent your house and with the rents, you can pay off your debts.
If you are thinking in the lines of deed-in-lieu, then I will suggest you to talk to the lender. In the process of deed in lieu, you will have to return the house to the lender who will give you a note stating that you have cleared off the debts. Then the lender will try to sell the house in the market and recover his debts. In most of the cases, the lender cannot recover the full debt but the deficient amount is forgiven by them. This forgiven amount of debt is considered as an income and is taxable under the laws. However, in short sale, you will have to pay the deficient amount.
Feel free to ask if you have further queries.
Sussane
Hi Betsy!
Other than foreclosure, the deed-in-lieu option is open for you. Deed-in-lieu is very similar to short sale and the difference is that the lender forgives the deficient amount which the debtor has to pay in a short sale.
Thanks,
Jerry
Other than foreclosure, the deed-in-lieu option is open for you. Deed-in-lieu is very similar to short sale and the difference is that the lender forgives the deficient amount which the debtor has to pay in a short sale.
Thanks,
Jerry