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Deed-in-lieu

Posted on: 28th Oct, 2008 07:07 am
Question:

I made a major mistake and built a home in a brand new neighborhood 5 years ago for 190k. I owe 180 after refinancing 2 years ago. The house is worth according to last years tax records 145k. Both builders have left. One filed for bankruptcy and the other just sold 16 inventory homes to private investor who has since filed for bankruptcy and all homes are foreclosed. Our HLA is non-exsistant. Over 50% of home owners (135 homes) have never paid dues. We have to organize to create a HLA because the builder controlled the board. We need serious help. The same floor plan of my house is selling on market for 121k.

How do I get out of this sink-hole?!?! I have had it on the market for 3 years (off and on). Someone suggested a deed-in-lieu. Should I try and qualify for another loan (get parent to co-sign if needed). Move out and just leave house and ruin my credit (which is average) or call lender and request deed-in-lieu?

Any suggestions would be appreciated

CB
"bowrag@yahoo.com"

[size=9:c906e1f182][color=Red:c906e1f182][Deactivated email address as per forum rules. Thanks.][/color:c906e1f182][/size:c906e1f182]
Hi Bowrag!

You can request the lender for a deed in lieu foreclosure. But you have mentioned that you had placed the house for sale 3 years ago but you did not get a buyer. I don't think the lender will accept a DIL in this situation. Its better if you can get another loan for the house.

Thanks,

Jerry
Posted on: 29th Oct, 2008 03:02 am
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