Posted on: 04th Aug, 2008 10:02 am
My son and his wife bought a house at the worse time, paid way to much for it, struggled with insurance for it and watched the taxes increase more and more. They struggle to make the mortgage payment. They have no equity to refinace. They are considering a dee in liew of foreclosure. What happens if they succeed in getting it, what happens to the balance of the loan? They already have poor credit. They need help. wjh
A deed-in-liue of foreclosure is just what it says: you give them a deed instead of going through with the foreclosure. You are basically giving them the house back.
Whether you owe the balance of the loan depends on whether your state allows for "deficiency" judgments, and also what you negotiate with the lender.
Whether you owe the balance of the loan depends on whether your state allows for "deficiency" judgments, and also what you negotiate with the lender.
Hi wjh,
Welcome to our forums.
Your son and wife seems to be having a bad time with the payments and taxes. But have they talked to the lender about deed-in-lieu? most probably they won't have to pay any deficiency as it waives the lender's right to collect the deficiency payment. To more more on what happens after deed-in-lieu , please refer to the information available on this topic.
Good luck
Welcome to our forums.
Your son and wife seems to be having a bad time with the payments and taxes. But have they talked to the lender about deed-in-lieu? most probably they won't have to pay any deficiency as it waives the lender's right to collect the deficiency payment. To more more on what happens after deed-in-lieu , please refer to the information available on this topic.
Good luck
