Posted on: 07th Mar, 2011 09:02 pm
hi there,
thank you for your answer susan. i forgot to mention that we have a 2nd home equity on our home with the same mortgage company. we purchased the home for $360k and owe $220,000 on the first (putting $120k down). then took out a home equity loan to pay my sister so we owe a total of about $298k. from what we've read, the deed in lieu of foreclosure would forgive the first, but not the include the 2nd because they would only be able to sell the house for about $220-$230k and we would be responsible for the difference. we would keep the 2nd and make the payments if they let us but don't think they will since it's attached to the first. ??
thanks again....
thank you for your answer susan. i forgot to mention that we have a 2nd home equity on our home with the same mortgage company. we purchased the home for $360k and owe $220,000 on the first (putting $120k down). then took out a home equity loan to pay my sister so we owe a total of about $298k. from what we've read, the deed in lieu of foreclosure would forgive the first, but not the include the 2nd because they would only be able to sell the house for about $220-$230k and we would be responsible for the difference. we would keep the 2nd and make the payments if they let us but don't think they will since it's attached to the first. ??
thanks again....
hi mdgoni,
it is true that you will be liable for paying off the second mortgage to the lender after the deed in lieu of foreclosure as it won't be covered in the sale. you can request the second mortgage lender to give you a payment plan in order to pay off the dues rather than making a lump sum payment.
thanks,
jerry
it is true that you will be liable for paying off the second mortgage to the lender after the deed in lieu of foreclosure as it won't be covered in the sale. you can request the second mortgage lender to give you a payment plan in order to pay off the dues rather than making a lump sum payment.
thanks,
jerry