Posted on: 18th Jan, 2009 12:03 pm
we moved to sc from wyoming. the bank here approved us for a first and second mortgage for our home in south carolina, but we still are making mortgage payments in wyoming. both houses are on the market, but have not sold.
at this time, we are still making the payments on time, we have never been late, but we are trying to find out why the banks will not help you if you are still making payments, they want people to have skipped payments.
and which is better, deed in lieu of foreclosure or short sale.
we wil keep the home in wyoming and move back.
please give some advice, we really don't know where to turn.
thank you.
at this time, we are still making the payments on time, we have never been late, but we are trying to find out why the banks will not help you if you are still making payments, they want people to have skipped payments.
and which is better, deed in lieu of foreclosure or short sale.
we wil keep the home in wyoming and move back.
please give some advice, we really don't know where to turn.
thank you.
Hi GFettyjr!
Welcome to forums!
It is correct that lenders do not want to offer a loan modification, deed in lieu or a short sale if the borrowers are not delinquent on their payments for at least a month. However, you may speak to the lender and try to negotiate with him and see if the lender gets ready for either a deed in lieu or a short sale.
In my opinion, a short sale is a better option than a deed in lieu. In a short sale, though you will have to pay the deficient amount, it will only effect your credit score by 75-100 points. But if you go for a deed in lieu, your deficient amount resulting from the sale of the property will be forgiven but your credit score will be lowered by 250 points.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
It is correct that lenders do not want to offer a loan modification, deed in lieu or a short sale if the borrowers are not delinquent on their payments for at least a month. However, you may speak to the lender and try to negotiate with him and see if the lender gets ready for either a deed in lieu or a short sale.
In my opinion, a short sale is a better option than a deed in lieu. In a short sale, though you will have to pay the deficient amount, it will only effect your credit score by 75-100 points. But if you go for a deed in lieu, your deficient amount resulting from the sale of the property will be forgiven but your credit score will be lowered by 250 points.
Feel free to ask if you have further queries.
Sussane
Hello GFerryjr,
I just went through a short sale. But, usually lender forgives the difference. Make sure you get that letter from the bank before disposing the property. I got a letter from my bank saying that the mortgage is paid in full eventhough I am 220K short. But, will issue 1099-C for which you need to deal with IRS later on.
I just went through a short sale. But, usually lender forgives the difference. Make sure you get that letter from the bank before disposing the property. I got a letter from my bank saying that the mortgage is paid in full eventhough I am 220K short. But, will issue 1099-C for which you need to deal with IRS later on.
I have asked my attorney he advised me deed in lieu is better for the credit my real estate and mortgage broker said otherwise I am bit confused which one to belive ? Can anybody advise Thank you
Hi peer,
A deed in lieu will lower your credit by 250 points but you would not have to pay the deficient amount resulting from the sale of the property.
If you go for a short sale, the effect on your credit will be less. Your credit will get lowered by 75-100 points. However, you would be liable to pay the deficient amount to the lender.
A deed in lieu will lower your credit by 250 points but you would not have to pay the deficient amount resulting from the sale of the property.
If you go for a short sale, the effect on your credit will be less. Your credit will get lowered by 75-100 points. However, you would be liable to pay the deficient amount to the lender.