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Need Advise - Foreclose or DIL or other?

Posted on: 22nd Nov, 2007 07:35 am
I own 4 homes in Ca. 1 of the homes is co-owned with 2 other people. This home and another had renters but now do not have renters and I am unable to rent them. I am current in all my mortgage payments including a Heloc. The loss in my renters are causing me financial hardships. I am considering foreclosure or Deed-in-Lieu of foreclosure in at least one of the homes. How will this affect my other homes? I need advice as I will be running out of money soon. I have very good credit and I hate to hurt my credit. What are my options?

Thanks,
Manny
Posted on: 22nd Nov, 2007 11:24 pm
hi mncorne,

welcome to this forum.

you have said your credit is very good and you are current with your mortgage payments. so why are you thinking about foreclosure? foreclosure will hurt your credit to great extent. it will drop your 150 to 200 points and will be shown in the credit report for 10 years.

i would suggest you to talk with your lender asap and see if you lender can provide you any options or not. i am sure you will have a couple of options available for you to avoid foreclosure. the process to avoid foreclosure is called loss mitigation. there is an article in this site regarding loss mitigation.

you can also think about selling one of your houses with the consent of the lender to avoid your financial hardship.

talk to your lender and please update us with your situation. feel free to ask if you have any further questions.

thanks,
larry
Posted on: 22nd Nov, 2007 11:41 pm
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