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deed in lieu vs short sale

Posted on: 05th May, 2012 01:34 pm
My unemployment ran out in Feb and only income is my husband.
He doesn't make enough to pay mortgage and property tax. Should we do a short sale or deed in lieu? The mortgage debt is more that the value of the home. We have decided we do not want to keep the home since taxes are too high and don't want to rent out. I understand if we do deed in lieu that the lender cannot come
after us later for deficiency judgement or balance left from short sale?
welcome supernursejanice,

it is true that the lender won't come after you for the deficient balance resulting from the sale of the property in case of a deed in lieu of foreclosure. in case of short sale, the lender will pursue you for the balance amount. a deed in lieu of foreclosure, thus, is a good option for you. however, it will reduce your credit score by 250 points.
Posted on: 06th May, 2012 08:38 pm
Hi supernursejanice!

Welcome to forums!

To know all about deed in lieu of foreclosure, you can check out the given page: http://www.mortgagefit.com/deed-lieu.html .

If you want to know about short sale, you can check out: http://www.mortgagefit.com/discuss/shortsale-crediteffect.html .

Feel free to ask if you've further queries.

Sussane
Posted on: 07th May, 2012 08:23 pm
in arizona, they will not come after you for a short sale deficiency or foreclosure if the loan is a purchase mortgage, and not a cash out refinance.
Posted on: 14th May, 2012 08:53 am
Thanks franko, for your opinion!! :)
Posted on: 16th May, 2012 11:19 pm
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