Posted on: 06th Jul, 2010 02:31 pm
Hi Mr. Heard,
I own a piece of land in Florida bough as an invesment in 2005 but I am having trouble paying. What would be my options if I can't afford it? Should I consider a deed in lieu? What happens to the balance owed after the bank sells the property?
I own a piece of land in Florida bough as an invesment in 2005 but I am having trouble paying. What would be my options if I can't afford it? Should I consider a deed in lieu? What happens to the balance owed after the bank sells the property?
Hi sold!
Welcome to forums!
As it is an investment property, you can get rid of the property by applying for a short sale with your lender. A short sale will reduce your credit score by 80-100 points and you would be liable for the deficient balance resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As it is an investment property, you can get rid of the property by applying for a short sale with your lender. A short sale will reduce your credit score by 80-100 points and you would be liable for the deficient balance resulting from the sale of the property.
Feel free to ask if you've further queries.
Sussane
Hi Sussane,
Thanls so much for the response. I was told that a short sale was an option. however I wanted to know if there are any other options? (i.e. a deed-in-lieu, or just walking away. What would be the consequences?)
Thanls so much for the response. I was told that a short sale was an option. however I wanted to know if there are any other options? (i.e. a deed-in-lieu, or just walking away. What would be the consequences?)
welcome flinvestor,
as your's is an investment property, deed in lieu of foreclosure or a normal foreclosure will have similar affects on you. if you walkaway from the property, then the lender will foreclose it. both in case of a foreclosure and deed in lieu of foreclosure, you would be liable for paying off the deficient balance resulting from the property sale. also, your credit score would go down by 250 points. whether you go for a deed in lieu of foreclosure or a normal foreclosure, it will remain on your credit report for the next 7 years.
as your's is an investment property, deed in lieu of foreclosure or a normal foreclosure will have similar affects on you. if you walkaway from the property, then the lender will foreclose it. both in case of a foreclosure and deed in lieu of foreclosure, you would be liable for paying off the deficient balance resulting from the property sale. also, your credit score would go down by 250 points. whether you go for a deed in lieu of foreclosure or a normal foreclosure, it will remain on your credit report for the next 7 years.