Posted on: 19th Aug, 2009 02:11 pm
My spouse and I bought a home in Minnesota 2 years ago. I am a disabled Iraqi War Veteran and she currently serves in Army reserves. 3 months ago my wife lost her job and I had to quit mine due to medical reasons. We have been living off our savings which is now gone. My wife was offered a job in Kansas and took it. We relocated here and now rent an apartment. I am currently unemployable. We can't make both a rent payment and a mortgage payment. Our house has been for sale for 4 months with minimal showings. We have tried to restructure the loan but the company's best option is not realistic. Is "deed in lieu of forclosure" my best option? If so, how do a go about it?
hi jeremiah!
welcome to forums!
as other options are not working for you, it would be better to go for a deed in lieu of foreclosure. in this process, you need to surrender the property to the lender who would sell it off and try to recover his dues. you shouldn't even worry about the deficient amount as it would be forgiven. as far as the taxes for the balance amount is concerned, it would be forgiven as per the mortgage forgiveness debt relief act. however, a deed in lieu of foreclosure would lower your credit score by 250 points and would remain in your credit report for the next 7 years.
feel free to ask if you've further queries.
sussane
welcome to forums!
as other options are not working for you, it would be better to go for a deed in lieu of foreclosure. in this process, you need to surrender the property to the lender who would sell it off and try to recover his dues. you shouldn't even worry about the deficient amount as it would be forgiven. as far as the taxes for the balance amount is concerned, it would be forgiven as per the mortgage forgiveness debt relief act. however, a deed in lieu of foreclosure would lower your credit score by 250 points and would remain in your credit report for the next 7 years.
feel free to ask if you've further queries.
sussane
My lender has offered me a deed in lieu of forclosure , since im behind two payments and my property is a rental property, and I lost my job and have no savings at this time . anyone knows what will happen with the taxes I might pay. or if the lender will require us to pay the diffierence of loan once its sold for less than what we owe?