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is a quit claim better than a deed in lieu of foreclosure

Posted on: 06th Jun, 2009 06:16 am
i have lost my job moved out of my home kept it maintained and payed it to date. i have ran out of money to continue paying the mortgage. i have 150k invested in the property but it is still upside down. i want to give it back to the bank with the least damage to my credit. i also have been taken by a law office for $3500; who is declared a fraud and has had my file since december without even contacting the mortgage co. i want to act fast because i have carryed this burden since dec. 2007 trying to refinance.

signed,

i only want out of this home nightmare and move on!
ailport,

welcome to forum.

when you do quit claim deed, you are transferign the owner ship of the property to soem one else. but you will be still responsible for the loan.

so it is better to do deed in lieu if you do not want to worry abotu the loan later.

good luck and feel free to ask.
Posted on: 06th Jun, 2009 10:01 am
Hi railport

I agree with Realgeni that if you sign a quitclaim deed, you would only be transferring the property. You would still be liable for the mortgage. Deed in lieu is a good option but again it would lower your credit score by 250 points.

You can try for a short sale which will lower your credit score by 75-100 points but you would be liable for the deficient amount resulting from the sale of the property.

Thanks.
Posted on: 07th Jun, 2009 03:42 am
One thigns. Youc an probably neogotiate upfront the deficient amount with yoru lenders. one of the reasons for short sale if to make the lender forgive the deficient amount and probably they will send you a 1099C.

Which is really not taxable with the current law.

Good luck
Posted on: 07th Jun, 2009 10:28 am
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