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two mortgages: would deed in lieu on 1st mortgage affect 2nd mortgage?

Posted on: 29th Jun, 2011 03:09 pm
I have a new mortgage (about 2 years ago) and still can't sell my old house which is in the same state but in a different location. During this time I have been able to rent to some family but they will be moving soon and thus back on the market which was not successful the first time. Would a deed in lieu hurt my current mortgage? What is the best scenario financially and credit wise to me...to sell for what I can and woudl the bank agree to a loan forget the remaining balance? or should I even go for that? just drop it and do the deed in lieu. Thanks!
hi guest!

welcome to forums!

a deed in lieu of foreclosure won't hurt your present mortgage. however, it will lower your credit scores by around 250 points. if you go for a deed in lieu of foreclosure, the lender will forgive the deficient balance resulting from the sale of the property.

feel free to ask if you've further queries.

sussane
Posted on: 29th Jun, 2011 10:11 pm
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