Posted on: 17th Jan, 2009 07:27 pm
I'm in foreclosure on my first mortgage, but I'm working with a government agency to reconstruct my loan. I have a second. They have gotten nervous and are afraid the first is going to foreclose. The second wants to foreclose. If I sign a deed-in-leiu, they will not forclose. Will give me a chance to renegociate the first. Should I do this?
hi crylncoury,
signing a deed in lieu is a better option than foreclosure. however, you should remember that a deed in lieu will lower your credit score by 250 points. however, the deficient amount resulting from the sale of the property will be forgiven in this case.
if the second mortgage lender goes for a deed in lieu, he will have to satisfy the first loan also. so you should check out with your second lender if they will be satisfying the first loan or not. if they do not, then you will have to pay it off.
signing a deed in lieu is a better option than foreclosure. however, you should remember that a deed in lieu will lower your credit score by 250 points. however, the deficient amount resulting from the sale of the property will be forgiven in this case.
if the second mortgage lender goes for a deed in lieu, he will have to satisfy the first loan also. so you should check out with your second lender if they will be satisfying the first loan or not. if they do not, then you will have to pay it off.