Posted on: 11th Jan, 2009 12:51 pm
we have submitted the paperwork for a deed-in-lieu to our mortgage company, where we have both our first and second mortgage with the same company. does the dil cancel out both the first and second mortgage or does it apply to only the first? thanks.
Welcome BA.
Is it a piggyback mortgage that you're talking about? or is it a first and second loan taken out from the same lender?
Deed in lieu is a way by which you can surrender your property to the lender and then he sells it off to recover the first loan and the second if it's with the same lender. In case there are 2 lenders involved here, the primary lender can accept a deed in lieu and recover his dues thereby taking up the responsibility to pay off the second.
To know more on what happens after deed in lieu on the first, refer to a previous forum discussion on second mortgage deed in lieu .
Thanks.
Is it a piggyback mortgage that you're talking about? or is it a first and second loan taken out from the same lender?
Deed in lieu is a way by which you can surrender your property to the lender and then he sells it off to recover the first loan and the second if it's with the same lender. In case there are 2 lenders involved here, the primary lender can accept a deed in lieu and recover his dues thereby taking up the responsibility to pay off the second.
To know more on what happens after deed in lieu on the first, refer to a previous forum discussion on second mortgage deed in lieu .
Thanks.