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should I do deed in lieu of foreclosure

Posted on: 10th Aug, 2009 08:44 am
i have a townhouse that i can not sell for what i paid for it and am having trouble renting out to cover the mortgage since there are so many others for rent. i don't want to foreclose but am thinking on doing deed in lieu of foreclosure. i forgot to mention that i lost my job and on unemployment so i do not have the extra funds to carry this. thanks
Guest

You would be better off with deed in lieu

You will notresponsible for the deficiant amount

Good luck and feel free to ask
Posted on: 10th Aug, 2009 09:47 pm
Hi Guest,

Deed in lieu is a good option to avoid foreclosure. However, you should note that a deed in lieu of foreclosure will lower your credit score by 200-250 points. In this process, you will have to surrender the property to the lender who will sell it off and try to recover the dues. The sale will not help the lender recover the whole amount. The deficiency resulting from the sale of the property would be forgiven.

You should note that immediately after the deed in lieu, you won't be able to get a mortgage. You'll have to wait for 3-4 years and then look out for loans. Meanwhile, you can stay in a rented property and try to improve your credit score.

Take care.
Posted on: 11th Aug, 2009 01:42 am
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