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Deed in lieu chances?

Posted on: 05th Apr, 2011 06:47 am
I have a house in south carolina and i just found out i was disqualified for the new (HAFA) program. I only have 1 mortgage on the house. it is my only house and primary residence. My mortgage is backed by fannie mae. since i didnt get qualified for (HAFA) what are my chance of the bank accepting a DEED IN LIEU?
welcome gumby,

if you're delinquent in your mortgage payments, then there is a high chance that the lender will consider your request for a deed in lieu of foreclosure. if the lender considers your request, then you will be able to get rid of the property and won't be liable for paying off any deficient balance. however, your credit scores would go down by 250 points.
Posted on: 05th Apr, 2011 08:44 pm
thanks for the input. Credit score has already been shot. unfortunately. but i am in negotiations with the bank about a short sale or deed in lieu. they are telling me if they do accept one i will have to sign a promisary note of $10,000 for 100 months. Does that sound right?
Posted on: 06th Apr, 2011 08:06 am
Hi gumby,

Many a times, the lenders ask the borrowers to sign such a promissory note. If you can afford to pay that amount, then you may go ahead and sign such a note. However, if you think that you won't be able to afford it, then you shouldn't sign the document.

Thanks
Posted on: 07th Apr, 2011 01:50 am
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