Due to financial hardship house is going into foreclosure. I tried to get a loan modification which was unsuccessful. Now I have three choices: 1) put the house on the market and hope to get it sold before a foreclosure date. 2) get a short sell and have to paid the difference. 3) Deed in lieu of foreclosure.
2007-04-02 03:47:52 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
You list your options in the exact order that you should pursue them. One other option is a Chapter 13 bankruptcy. This allows you to repay the delinquent amounts in a plan over the course of 36-60 months. If you have the income to pay the current mortgage plus the amount necessary to cure the deficiency, this may be the way to go. Also, you should talk to a qualified consumer credit counsellor who may be able to help you with a loan modification. Finally, if your loan is FHA insured, there are specific regulations to which the bank must adhere. If you meet the criteria for a loan modification and you are FHA insured, they cannot turn you down. Just because you got a no answer once doesn't mean that you should not try again. You also may be able to refinance depending on your credit and equity situation.
2007-04-02 04:04:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I would think the only one that could actually help you is if you can sell it BEFORE the foreclosure date. I went through the same thing. My attorney told me that a deed in lieu still looks bad on your credit b/c it still shows that you could not pay for your house. Dont do what I did, I thought they would give me some time to sell the house and I waited too long. My house got foreclosed on taken right from me!!
2007-04-02 03:55:21 · answer #2 · answered by Blue 4 · 0⤊ 0⤋
A deed in lieu will have a dramatic negative effect on your credit scores, similar to a foreclosure. This will remain on your report for 10 years unless you e able to negotiate, as a part of the deed in lieu process that the lender cease reporting your account to the bureaus. They may not agree, but it is worth a shot as your deeding them the property will greatly reduce their loss.
2007-04-02 04:03:15 · answer #3 · answered by Anonymous · 1⤊ 1⤋
Deed in Lieu of Foreclosure is essentially the same as a foreclosure as far as your credit rating is concerned. It may have an infinitesimally lesser impact but it will hurt your credit quite a bit.
With a short sale, you may be able to negotiate what the lender will place in your credit report. It never hurts to ask.
2007-04-02 04:04:20 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 2⤋