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Deed-In-Lieu of Foreclosure????

Posted on: 08th Jun, 2010 02:31 pm
I'm hoping to retire in Jan,2011. Live in Las Vegas, owe $212,000, market about $130 - $140. Can't sell or rent this one. Never a late payment, estimated 770-780 FICO. Want to buy (cheap) home in northern Arkansas.
Thinking of deed-in-lieu on Vegas house. If we try to buy in Arkansas before DIL in Vegas, my debt ratio is way out of whack. After DIL & retirement, our ratio will be well below 36%. Have $10K for down & closing. BUT, will any lender touch us? HELP!!!!
Hi rhak,

If you sell off your present property though a deed in lieu of foreclosure, you will not be able to get a mortgage within 3-4 years. You will have to rent a property for the time being, improve your score and then look out for a mortgage.

If you try to buy a new property before selling off the existing one, then your debt to income ratio will go against you and you won't qualify for a loan.

Thanks
Posted on: 08th Jun, 2010 09:08 pm
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