My fiance and i are able to afford our house but not with comfort. we are looking into foreclosing and found their might be an option of "deed in lieu of foreclosure" where the lender takes it back
2007-11-05 06:21:25 · 4 answers · asked by dealer 1 in Business & Finance ➔ Renting & Real Estate
This may or may not be accepted by your lender. It is their choice. If they think that you could keep up the payments they probably won't accept the "deed in lieu". After all they did not choose this house and they do not want to become the owner of this house.
It will likely hurt your credit almost as much as a foreclosure. Who will pay the property taxes will probably be decided in the agreement of handing your property to your lender.
2007-11-05 06:51:33 · answer #1 · answered by glenn 7 · 0⤊ 1⤋
If the lender accept the property back with your deed-in-lieu then who ever name is on the property at the time the property taxes are due will be required to pay the property taxes.
Now if there are back taxes owed on the property the lender will bring them current so as the county will not foreclose for back taxes,thus leaving the lender out of the equation.
Before turning the house back to the lender, you might consider speaking with the loss mitigation department of your lender and see if they can work out a deal where you may keep your home.
There are many lenders now that are doing refinances, lowering interest rates, forgiving parts of the loan, adding payments to the end of the mortgage and other things so you might keep your home.
It is worth checking out before turning it back to the lender. A call never hurt.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-11-05 11:14:43 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
Some lenders will not execute a "deed in lieu of foreclosure." No matter what method you return the house to the seller, your credit report will take a significant hit. Whoever owns the home when the property taxes are due is responsible for the taxes.
2007-11-05 07:39:29 · answer #3 · answered by godged 7 · 0⤊ 1⤋
Don't know about property tax, but there may be income tax issues. Talk to your lender and find out the details of the deed in lieu of foreclosure.
Good luck and smart decision!
2007-11-05 06:31:14 · answer #4 · answered by Anonymous · 0⤊ 2⤋