Deed in Lieu of Foreclosure

sunnyca2009

Posted on: 02nd Oct, 2009 05:52 pm

i have been trying to sell my house for 8 months with no luck. need to move due to family illness. will not be employed once i move but will be living on my military retirement to pay what bills i have. i am not behind on mortgage as i am currently employed. my plan is to ask for a deed in lieu of foreclosure and stop mortgage payments as of nov and hope they deed in lieu is accepted. with the tax relief law of 2009, is it best that i move before the end of the year to avoid a tax burden? the house is in great shape just no one is looking at this time. i have a realator with no luck to date. any advice/guidance?

Total Reply : 5

The debt relif act will in 2012. You donto need to move before the end of the year

First time home buyers credit will expires on November 30th

Also if you do deed in lieu then normally you do not owe anythignto the bank. Normally it is when you do short sale or foreclosure

sunnyca2009

Posted on: 02nd Oct, 2009 07:22 pm

Hi kevincaldwell,

You can definitely apply for a deed in lieu of foreclosure with your lender. You should inform your lender about your financial situation. If the lender is convinced about your situation, he would definitely accept your deed in lieu request. Moreover, you won't be responsible for the deficient amount and the taxes related to it due to Mortgage Debt Relief Act. It would be a good idea to complete your deed in lieu before the year ends as you would be able to take advantage of the Mortgage Debt Relief Act.

Thanks

jameshogg

Posted on: 02nd Oct, 2009 08:21 pm

The main advantage with deed in lieu you you will free and clear, but for sure your credit report will be hit

sunnyca2009

Posted on: 02nd Oct, 2009 08:23 pm

Thanks for all your many responses and advice.

Anonymous

Posted on: 05th Oct, 2009 06:10 am

kvcmedic good luck

and We all are glad to help

sunnyca2009

Posted on: 05th Oct, 2009 09:52 pm