Posted on: 18th Jul, 2011 09:48 am
I purchased my home in 2008, declared bankrupcy in 2009 but was able to keep my home. I've lost my job two months ago and have depleted my savings trying to stay on top of my debt. I am now facing the possiblity of having to walk away from my home. Would a deed in lieu be my best option?
Short sale, or deed in lieu would be the best option, if you cannot sell via regular sale, or rent out the home. A foreclosure would be the worst option. Having a short sale or deed in lieu, you may be able to save your credit. Some states have deficiency judgements, meaning the lender can come after you for years, to collect the difference between what your home sold for, and what the mortgage balance was. Also, there could be IRS implications as well. Contact a lawyer or your state department of real estate to find out your lenders recourse laws, and contact a tax professional to see what tax implications leaving your home would trigger. Good Luck!