Posted on: 05th Mar, 2010 12:07 pm
Florida house owned by my 86 year old father, who resides in California. Over 3 years of payments on original 1st & 2nd mortgages. The house has gone down in value by so much, that my father now wants to give the house up. What is the best way with the least chances of them coming after my father to accomplish this? At his age, he does not care what happens to his credit score. So far, he is 2 payments behind. He owns the house he lives in, in California.
hi greenx,
if the property is upside down, the mortgage lenders may come after your father for the deficiency. he can talk to the mortgage lenders and check out if a deed in lieu of foreclosure is possible. in a deed in lieu (dil), the lenders will forgive the deficiency and will not sue your father for the deficiency. in case the lenders do not accept his request for a deed in lieu, he may consider the option of filing bankruptcy chapter 7 and getting the mortgage debts discharged. however, in any case he will have to lose the house if he stops making the monthly payments.
if the property is upside down, the mortgage lenders may come after your father for the deficiency. he can talk to the mortgage lenders and check out if a deed in lieu of foreclosure is possible. in a deed in lieu (dil), the lenders will forgive the deficiency and will not sue your father for the deficiency. in case the lenders do not accept his request for a deed in lieu, he may consider the option of filing bankruptcy chapter 7 and getting the mortgage debts discharged. however, in any case he will have to lose the house if he stops making the monthly payments.