Posted on: 12th Jan, 2010 06:40 pm
the lender is accepting deed in lieu, but what puzzles me is the note will be marked as paid, but then the lenders still have the right to ask for unpaid debt amount?? Can they sell the property way low than the tax valuation assessment or lower than we bought it?
we are now over 65 years old and we can not afford any more loan, we live in fixed income from social security. how do we get out this mess, we already lost all our money we have put a lum sum of $20K when we bought the house. the balance now is $147K and we bought it for $170K which is the tax valuation amount of the property.
so the lender still have the right to collect the difference if they don't sell it at least $150K???
we are now over 65 years old and we can not afford any more loan, we live in fixed income from social security. how do we get out this mess, we already lost all our money we have put a lum sum of $20K when we bought the house. the balance now is $147K and we bought it for $170K which is the tax valuation amount of the property.
so the lender still have the right to collect the difference if they don't sell it at least $150K???
hi molo,
if you do a deed in lieu of foreclosure on your property, the lender does not generally come after you to collect the deficiency. in a few cases, the lender is seen to be coming after borrowers for the deficient amount. you should talk to the lender and find out whether he wants to collect the deficiency from you. in case, he says he does not, you must get it from him in writing that he will forgive the deficiency from the deed in lieu.
the lender will try and sell the property at the fair market value. they cannot deliberately sell it for an amount less than what you owe. the lender will always want to collect as much money as possible from the sale of the home so that the mortgage is paid in full.
however, since you are more than 65 years old, you can consider the option of taking a reverse mortgage, provided there is enough equity in the property. you will not have to make any monthly payments. instead, you will be receiving money from your reverse mortgage lender. you can also pay off the existing mortgage with the lump sum money received from the reverse mortgage.
if you do a deed in lieu of foreclosure on your property, the lender does not generally come after you to collect the deficiency. in a few cases, the lender is seen to be coming after borrowers for the deficient amount. you should talk to the lender and find out whether he wants to collect the deficiency from you. in case, he says he does not, you must get it from him in writing that he will forgive the deficiency from the deed in lieu.
the lender will try and sell the property at the fair market value. they cannot deliberately sell it for an amount less than what you owe. the lender will always want to collect as much money as possible from the sale of the home so that the mortgage is paid in full.
however, since you are more than 65 years old, you can consider the option of taking a reverse mortgage, provided there is enough equity in the property. you will not have to make any monthly payments. instead, you will be receiving money from your reverse mortgage lender. you can also pay off the existing mortgage with the lump sum money received from the reverse mortgage.
Hi molo,
In a deed in lieu of foreclosure, the deficient amount resulting from the sale of the property will be forgiven by the lender. The lender will not sue you for the unpaid debts. However, if there is equity in the property, then you can apply for a reverse mortgage and save your property as Jenkin has suggested in his post. If you go for it, then you won't have to make regular mortgage payments.
Thanks
In a deed in lieu of foreclosure, the deficient amount resulting from the sale of the property will be forgiven by the lender. The lender will not sue you for the unpaid debts. However, if there is equity in the property, then you can apply for a reverse mortgage and save your property as Jenkin has suggested in his post. If you go for it, then you won't have to make regular mortgage payments.
Thanks
thanks for all your replies, it did tried for reverse mort. there's equity on the property, but because the mfd home is 1973 they wont take it, although the land itself is much sufficient for the appriassal. they said were stock with it, unless we tear donw the mfd1973, which we can not it was modified for almost stickbuilt but the county record still mfd single dwelling and county said can not change it either, unless we tear down the house.