Posted on: 14th Oct, 2008 06:58 pm
Hello,
My husband (as a bachelor) bought a home in Novemeber 2005. In May 2006 he found a better job in another town (two hours away). He put the house on the market with a real estate agent from May '06- Oct '06, he took it off because there we're no offers and the agent advised him to do repairs in the mean time.
He found renters to move in, and they paid rent, but it didn't cover the full mortgage payment per month. So he was still losing money.
He painted, Installed a new shower head, new kitchen faucet, new water heater, and re-finished the wood floors.
The renters notified us, August 1st 2008 that they would be moving out by the end of September 2008. We put the house on the market for the second time. We have had no offers and are out of money to pay for this mortgage.
Our lender is sending us an application for a Deed in Lieu. And we were wondering how hard it is to actually get them to accept our application and if they do, can they sue us for deficiency judgements. Because we know that if they sell it, it will be sold for less than the mortgage is worth.
In our state of Nebraska, online information states that deficiency judgements are not permitted.
What can you tell us about this and our situation?
My husband (as a bachelor) bought a home in Novemeber 2005. In May 2006 he found a better job in another town (two hours away). He put the house on the market with a real estate agent from May '06- Oct '06, he took it off because there we're no offers and the agent advised him to do repairs in the mean time.
He found renters to move in, and they paid rent, but it didn't cover the full mortgage payment per month. So he was still losing money.
He painted, Installed a new shower head, new kitchen faucet, new water heater, and re-finished the wood floors.
The renters notified us, August 1st 2008 that they would be moving out by the end of September 2008. We put the house on the market for the second time. We have had no offers and are out of money to pay for this mortgage.
Our lender is sending us an application for a Deed in Lieu. And we were wondering how hard it is to actually get them to accept our application and if they do, can they sue us for deficiency judgements. Because we know that if they sell it, it will be sold for less than the mortgage is worth.
In our state of Nebraska, online information states that deficiency judgements are not permitted.
What can you tell us about this and our situation?
Hi adenjt!
Welcome to forums!
Deficiency judgment is not allowed in Nebraska. If the highest bid on the house is still less than the amount of the loan, the difference between the two amounts cannot be sought from the you in Nebraska. I don't think the law will permit the lender to sue you. They may place a lien on other properties that you have.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
Deficiency judgment is not allowed in Nebraska. If the highest bid on the house is still less than the amount of the loan, the difference between the two amounts cannot be sought from the you in Nebraska. I don't think the law will permit the lender to sue you. They may place a lien on other properties that you have.
Feel free to ask if you have further queries.
Sussane
Ok, that was our main concern! And we don't own any other properties, so they shouldn't be able to place a lien on anything, right? Or are you talking about cars, and stuff like that?
P.S. I've never used Forums before...
MamAden and adenjt are both 'me'...
I just didn't know what to put in the 'your name' section. Sorry for any confusion.
MamAden and adenjt are both 'me'...
I just didn't know what to put in the 'your name' section. Sorry for any confusion.
Hi MamAden,
I do not think the lender will place liens on cars or other vehicles but yes, the lender may speak to your employer and garnish your income. This means that he can deduct money from your salary and recover his debt.
Thanks.
I do not think the lender will place liens on cars or other vehicles but yes, the lender may speak to your employer and garnish your income. This means that he can deduct money from your salary and recover his debt.
Thanks.