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Can You do a deed in lieu with two home loans

Posted on: 14th Sep, 2010 09:42 am
I have two home loans with different banks. house is assest at 333,000 one loan is for 289,00 one at 74,000
hi fcsojeff,

you may apply for a deed in lieu of foreclosure when there are two loans on the property. however, when the first lender takes over the property due to a deed in lieu, it'll be his responsibility to pay off the junior lien as no buyer will purchase a property with a lien on it.

the first lender will include the non-merger clause into the dil agreement when there are two mortgages. this clause prevents the second mortgage lender from taking any legal action against the first lender in case they don't pay off the balance amount on the second loan. to know more on this regard, check out the given page:
http://www.mortgagefit.com/predeal/deedinlieu-juniorlien.html

thanks
Posted on: 15th Sep, 2010 01:53 am
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