deed in liew of foreclosure with 2nd mtg.

hi penner_mona,

welcome to the forums.

the lender will sell off the property in case of deed in lieu. the lender will be able to recover the outstanding loan balance on the first mortgage from the sale proceeds. the lender will then use any remaining funds to pay off the second.

know more on what happens to second mortgage after deed in lieu from a previous forum discussion on 2nd mortgage deed in lieu.

take care

We are going through the process of seeing if we want to do a DIL. What are the risks/benefits? What type of info do they actually need? They have our soc.sec # can't they do a credit check off that? We aren't too comfortable giving out too much info if they don't need it. There are so many scams out there!

Welcome elegdblu,

If you file a deed in lieu, the lender will sell off your property and recover his debts. If there is a deficient amount from the sale of the property, then that will be forgiven. But you will have to pay taxes on that amount. However, you should note that a deed in lieu will lower your credit by 250 points. To know more about deed in lieu, check out the following link:
http://www.mortgagefit.com/deed-lieu.html

for how long will the lost of points in credit score would last after deed in liew is done?

Hi miguel,

Any negative item will remain on your credit report for 7 years. As far as the credit score is concerned, it can be improved with time. You can check out the following link in order to know how you can improve your credit:
http://www.mortgagefit.com/credit-rating/credit-repair.html

Thanks