My bank is sending me paperwork on a deed in lue of foreclosure, which I haven't seen yet. What happens now?

Question

My ex won't buy or sell or rent. How bad will this affect my credit rating? And does he really get to live there free for a year or more (such as a regular foreclosure)?

Ex is not on mortgage, but on title.

I was never married to the man....Thank God!!! House has been for sale for the last year and a half, but ex has refused to lower asking price and the one offer we did receive he refused.

Answer 1

No doubt your credit rating will be affected by this foreclosure. Even if the foreclosure does not appear appear on your credit report the number of months you were late will appear.

Now when the bank send this document to you they are asking if you agree to leave the place without any damages on your part.

They are further saying that they will take the property in-lieu of the foreclosure.

So you have to sign this document saying you agree and will leave upon their request.

Is your ex, I assume that is husband, on the mortgage? If he is he has to sign also. If not he will not have to sign. If he is on the mortgage and refuse to sign. I suggest you sign and return it to the lender with a note saying your ex refuse to sign this document. They will have to deal with them, though your credit report will now reflect a foreclosure

If he refuse to leave the house he will be eventually be served with an unlawful eviction.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 2

Deed in lieu of foreclosure means you give up the property to the lender. There is something wrong in the facts you gave. If the ex is on the title, then he needs to be on the mortgage, and he would have to sign the deed in lieu for it to be effective. If he is on the title, but not on the mortgage, then he can live there as long as he pays the real estate taxes, because his interest in the house is not mortgaged and it can't be foreclosed.

This will crash your credit rating. You think it has crashed already but trust me, you ain't seen nothing yet. A deed in lieu is marginally better than a full-dress foreclosure; you might emerge with a rating in the low 500s (assuming you had a score in the mid-700s before the problem) while a foreclosure will generally put you into 400 territory. Rent a new place to live before you do this, because many landlord's won't accept you with the credit rating you're going to emerge with.

Answer 3

I would get an attorney involved. If there is another party who is not cooperating, you need to take action and now! Your credit is going to be (and probably already has been) severely affection. A deed in lieu is just as bad as a regular foreclosure and if he's still living there and you're not, he needs to buy you out. If he can't, the place should be sold and you split any proceeds. That's why you need the attorney, to force the issue.

Sorry, no easy answers for you. Good luck!

Answer 4

The deed in lieu of foreclosure will give you a certain amount of time to sell your house and avoid foreclosure. If your ex is on the title too, you would both have to sign the sale agreement when it happens. If he won't, he is going to cause both of you to have a foreclosure on your credit report, which will stay there 7-10 years. It sounds like you will probably have to get your lawyer involved to force him to either sign the papers or refinance in his name only.

Answer 5

I agree with both of the other posters. It will affect your credit. But you wont have a foreclousure. But it forces you so sign that you will be legally out on this date and the house will be in a good condition. They give you this option so you will just leave and they can get in the house earlier.

If your ex is on the loan or on title, this could be a fight. They cant force him to sign it therefore it will be foreclosed against.

Good luck and sorry for your bad luck.