Posted on: 27th Aug, 2009 08:51 pm
I have a condo/townhouse that I can no longer afford. Unfortunately, when my loan was approved I wasn't given the best guidance or information by my realtor and loan officer and entered into an interest-only for two years on my first loan that will reset to an ARM after that. Well this will occur in November of this year and I'm just dreading that payment - could be an additional $400-500. I, like many others, was advised to go stated income as I was told this would get me the best loan. I now know that I really screwed myself by buying this condo which I probably couldn't afford with my "real income" and not "stated".
On top of that, I graduated from grad school last year which has left me with $73,000 in student loans (undergrad & grad combined) and now that my grace period ended two months ago, I have a monthly payment of $500 dollars that I didn't have when I first purchased my loan. I am doing everything I can working two jobs and still living paycheck to paycheck just to pay all of my bills. Out of the 16months that I've had my mortgage, I have never once been late. My credit is excellent; however, I can no longer do this. I'm always stressed, which is making me physically sick; I literally work 7 days a week and I have no life; I'm sad, worried, and on the verge of depression.
Bottom line, I can no longer do this and I have come to the conclusion that I would be ok with letting this property go and rebuilding my credit if it means that I will have peace of mind and that I can smile again and enjoy every day God gives me. There's nothing like peace and I just don't have that with this house. Unfortunately, the value of my condo and houses in my area have declined drastically and I owe more than what it is worth. My question, is how do I convice my lender to allow me to do a Deen in Lieu? Do I have to be behind on payments? I have done a lot of research and I determined that I only have 4 options: 1. request a short sale; 2. request a loan modification; 3. request a short refi; 4. request a deed in lieu. However, I'm at the point where I want to go straight to option 4 - that's how bad I want my freedom.
I am in no way trying to take the easy way out for my poor judgement when purchasing this condo; however, I have to move ahead with what will be best for my life and I've decided that this is what I need to do in order to have my life back, which means more to me than any piece of property ever will.
With that said, what do I have to do, say, show to my lender that will convice them that a deed in lieu is the best for all involved? Your advice is greatly appreciated!!!
On top of that, I graduated from grad school last year which has left me with $73,000 in student loans (undergrad & grad combined) and now that my grace period ended two months ago, I have a monthly payment of $500 dollars that I didn't have when I first purchased my loan. I am doing everything I can working two jobs and still living paycheck to paycheck just to pay all of my bills. Out of the 16months that I've had my mortgage, I have never once been late. My credit is excellent; however, I can no longer do this. I'm always stressed, which is making me physically sick; I literally work 7 days a week and I have no life; I'm sad, worried, and on the verge of depression.
Bottom line, I can no longer do this and I have come to the conclusion that I would be ok with letting this property go and rebuilding my credit if it means that I will have peace of mind and that I can smile again and enjoy every day God gives me. There's nothing like peace and I just don't have that with this house. Unfortunately, the value of my condo and houses in my area have declined drastically and I owe more than what it is worth. My question, is how do I convice my lender to allow me to do a Deen in Lieu? Do I have to be behind on payments? I have done a lot of research and I determined that I only have 4 options: 1. request a short sale; 2. request a loan modification; 3. request a short refi; 4. request a deed in lieu. However, I'm at the point where I want to go straight to option 4 - that's how bad I want my freedom.
I am in no way trying to take the easy way out for my poor judgement when purchasing this condo; however, I have to move ahead with what will be best for my life and I've decided that this is what I need to do in order to have my life back, which means more to me than any piece of property ever will.
With that said, what do I have to do, say, show to my lender that will convice them that a deed in lieu is the best for all involved? Your advice is greatly appreciated!!!
generally a lender accepts a deed in lieu of foreclosure when you are delinquent on your mortgage payments and awaiting a foreclosure. as you are facing a financial crisis right now, you should apply for deed in lieu with your lender right now and check out what he has to say in this regard. if the lender agrees to take back your property without you being delinquent on the loan, then you can go ahead with the process.
however, you should note that a deed in lieu of foreclosure will remain on your credit report for 7 years as a negative item. moreover, it would lower your credit score by 250 points.
however, you should note that a deed in lieu of foreclosure will remain on your credit report for 7 years as a negative item. moreover, it would lower your credit score by 250 points.