Posted on: 24th Sep, 2008 09:07 pm
What is a deed in Leu and what should we watch for.
Hi susied!
Welcome to Forums!
Generally deed in lieu is an option for those who are unable to pay their loans and situation is such that their property will go for a foreclosure. In deed in lieu, you will have to transfer the property to the lender who will give you a note stating that your loan has been paid. Then the lender tries to sell the property in the market to recover the loan amount. If the market is down then the house is sold at lower price. Thus, there remains a deficient amount which the lender generally forgives. However, this is considered as an income so you can be charged taxes on it.
Feel free to ask if you have further queries.
Sussane
Welcome to Forums!
Generally deed in lieu is an option for those who are unable to pay their loans and situation is such that their property will go for a foreclosure. In deed in lieu, you will have to transfer the property to the lender who will give you a note stating that your loan has been paid. Then the lender tries to sell the property in the market to recover the loan amount. If the market is down then the house is sold at lower price. Thus, there remains a deficient amount which the lender generally forgives. However, this is considered as an income so you can be charged taxes on it.
Feel free to ask if you have further queries.
Sussane
Will a deed in lieu option hurt your credit and affect a future purchase of a home?
Hi Lesa!
A Deed in lieu foreclosure will remain on your credit report for 4 years from completion date and you will also give have to give at least 10% down payment for mortgage between 4 and 7 years. A deed in lieu will also lower your credit score by 250 points.
Thanks,
Jerry
A Deed in lieu foreclosure will remain on your credit report for 4 years from completion date and you will also give have to give at least 10% down payment for mortgage between 4 and 7 years. A deed in lieu will also lower your credit score by 250 points.
Thanks,
Jerry
what is the internal inspection about that the mortgage company ask for?
Hi terrie,
Has there been a valuation of the property? Generally internal inspections are done during the valuation of the property.
Thanks,
Jerry
Has there been a valuation of the property? Generally internal inspections are done during the valuation of the property.
Thanks,
Jerry
What type of attorney should I consult with before seriously considering deed in lieu foreclosure? Will an attorney help me avoid any of the pitfalls and fallout in starting this process?
thanks.
"adsmith007@hotmail.com"
[Link deactivated as per forum rules. Thanks.]
thanks.
"adsmith007@hotmail.com"
[Link deactivated as per forum rules. Thanks.]
Hi Allan Smith
As you are considering a deed in lieu, you will have to first apply to the lender for it by writing a hardship letter. If the lender accepts a deed in lieu, then he will tell you the steps you need to take in this regard. You may consult a mortgage attorney who may help you in negotiating with the lender.
Thanks.
As you are considering a deed in lieu, you will have to first apply to the lender for it by writing a hardship letter. If the lender accepts a deed in lieu, then he will tell you the steps you need to take in this regard. You may consult a mortgage attorney who may help you in negotiating with the lender.
Thanks.
if you do a deed in leu forclosure can the bank come after you in the future and collect by taking another property or attach waiges
Hi Guest,
In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven. So the lender will not come after you to claim the deficient amount.
Thanks
In a deed in lieu, the deficient amount resulting from the sale of the property is forgiven. So the lender will not come after you to claim the deficient amount.
Thanks
what if you loose your job and now your new job pays much less and at the same time your bank sells your mortgage to another lender for pennies on the dollar but you still owe the same amount. Will you qualify for a loan in lue ?
what if you loose your job and now your new job pays much less and at the same time your bank sells your mortgage to another lender for pennies on the dollar but you still owe the same amount. Will you qualify for a loan in lue ?
If you select deed in lieu option then it can damage your plans for new home loan. So i would like to suggest you to think a lot before going for deed in lieu.