Posted on: 20th Apr, 2009 01:22 pm
we purchased a lot as an investment in another state w/ an interest only loan, now 2 years later loan has come to maturity& we will have very hard time making those payments [ one of us has lost their job ] . and the lots have not been seling , realtor won't even list anymore in that community, although the developer is still selling his lots at the 200's and up range . wha is my best option, try to do a loan modification or am i pouring more money down the drain that i will never see again? or cut my losses now and ry to see if the bank will accept a deed in lieu of foreclosure ?
Hi
If you can modify your loan it will help you avoid a foreclosure and thus save your credit. But you must take into consideration the fact that how much you would be able to save through a modification and whether you would be able to remain current on the loan for the rest of the loan term. If you think the modification plan isn't going to improve your situation, you can go for a deed in lieu of foreclosure. But credit wise, a modification would be better than a DIL.
If you can modify your loan it will help you avoid a foreclosure and thus save your credit. But you must take into consideration the fact that how much you would be able to save through a modification and whether you would be able to remain current on the loan for the rest of the loan term. If you think the modification plan isn't going to improve your situation, you can go for a deed in lieu of foreclosure. But credit wise, a modification would be better than a DIL.