Posted on: 25th Apr, 2010 06:01 am
i own a condo that was appraised at $220,000. now it is around $110,000.
i have a mortgage with an outstanding balance of $190,000 and a second mortgage for $17,000. i have never been in arrears, my payments are current. in a few month i will retire and my income will drop to 30% of my current income. i intend to go back to live in my country. i intend to ask the mortgage company for a deed in lieu of payment. what would be the probable reaction of the mortgage company and what will happen to the second mortgage secured by the same property?
i have a mortgage with an outstanding balance of $190,000 and a second mortgage for $17,000. i have never been in arrears, my payments are current. in a few month i will retire and my income will drop to 30% of my current income. i intend to go back to live in my country. i intend to ask the mortgage company for a deed in lieu of payment. what would be the probable reaction of the mortgage company and what will happen to the second mortgage secured by the same property?
hi guest,
lenders generally accept a deed in lieu of foreclosure only when a borrower is delinquent in his or her loan payments. also, after a deed in lieu of foreclosure, you would be liable for paying the second mortgage. if you don't do so, the lender may charge off the dues to a collection agency who will contact you and collect the dues. also, your credit score would get badly affected due to this. your score would get reduced by 250 points.
lenders generally accept a deed in lieu of foreclosure only when a borrower is delinquent in his or her loan payments. also, after a deed in lieu of foreclosure, you would be liable for paying the second mortgage. if you don't do so, the lender may charge off the dues to a collection agency who will contact you and collect the dues. also, your credit score would get badly affected due to this. your score would get reduced by 250 points.