Posted on: 18th Nov, 2010 08:31 pm
We are able to afford our morgage payments, but we are in an underwater morgage, with a first and a second. The second has a balloon payment due in ten years. Our loan is for $443,500 and the market value for our house right now is about $230,000. We are a family of four, living in a very small 2 bd, 1bath home. We need to add on to the house, but we know we will never be able to afford it. We have been in this house for 3 and a half years. Basically, we want to walk away and rent something that our family can comfortly live in. What should we do?
hi daynahudson,
as you're facing hardship in paying off the dues, you should contact your lender and apply for a deed in lieu of foreclosure. this will not only help you in getting rid of the property but you won't be liable for paying the deficient balance resulting from the property sale. however, the second mortgage lender may come after you in order to recover his balance amount.
thanks,
jerry
as you're facing hardship in paying off the dues, you should contact your lender and apply for a deed in lieu of foreclosure. this will not only help you in getting rid of the property but you won't be liable for paying the deficient balance resulting from the property sale. however, the second mortgage lender may come after you in order to recover his balance amount.
thanks,
jerry
Is there a chance that the morgage company will reject our application for a deed in lieu? Or do most lenders accept applications? Also, can we apply for a deed in lieu for our second? That loan is about $80,000.
Hi Dayna,
If the lender is convinced about your financial hardship, then he will accept your request for a deed in lieu of foreclosure. You cannot separately apply for a deed in lieu of foreclosure with your second mortgage lender. When you apply for it to your first lender, both of them have to agree to it.
Thanks
If the lender is convinced about your financial hardship, then he will accept your request for a deed in lieu of foreclosure. You cannot separately apply for a deed in lieu of foreclosure with your second mortgage lender. When you apply for it to your first lender, both of them have to agree to it.
Thanks