In a situation where the borrower is current with the mortgage and has good credit, but knows that they will have problems in the future with payments. Where the property is worth less than current loan amounts. The owner wishes to get rid of the property.
This is the primary residence, but they have someplace to move to. My question is, which is preferred by the loan company? Which will clean up more quickly in terms of credit score, Deed in Lieu of Foreclosure or Short Sale?
2007-11-30 06:12:49 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
it kinda stinks that your getting the wrong answers. Let me clear the air a little.
Short sales and DIL's vary from lender to lender.
MOST lenders will not allow the DIL (deed in lieu) until a few conditions are met, Your basically surrendering the home back to the bank. The perks? you will minimize the foreclosure and attorney fees. however it might show volentary forclosure on your credit report and it might be hard to get another home loan. Some common requests that a mortgage company will ask of you will be - show your unability to pay the loan through their hardship packet. Property must have been listed for over 90 days will a realtor. And it will have to make sence to do a DIL.
A short sale is much better. the lender will agree as well.
their credit will reflect one of the two a) paid in full or b) settled debt. settled debt is much better then a voulantary surrender! I have done multiple short sales where the homeowner was current. the lender my request that they be at least 30 days past due.
am in the process of establishing a new company to help people just like you. Many people cant afford to take Short Sale classes and/or do not have the time. Short Sales are highly complexed. If there is any other questions I can help out with, shoot me an email.
2007-11-30 20:12:41 · answer #1 · answered by whoknows? 2 · 0⤊ 0⤋
They are all bad for your credit, and the loan company doesn't "prefer" any of your 3 options because they all equal a loss for the investor. As far as a short sale is concerned, the mortgage company will not even consider it if the borrower current on their payments. Most likely they will also not accept a deed in lieu in this case either.
2007-11-30 06:16:29 · answer #2 · answered by Slassy Girl 6 · 1⤊ 0⤋
With current payments, the lender most probably will not agree to either a deed-in-lieu or a short sale. The only way to get out now is to stop making payments and go through foreclosure, which will make the credit score look like a nuclear bomb hit it.
2007-11-30 06:25:10 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
With a deed in lieu you're giving the domicile back to the economic enterprise without them ding a foreclosure. this could save your credit. a short sale is the place somebody negoitates with the economic enterprise to purchase the valuables from them for under what the non-public loan is. you could't in maximum situations negiotate a short sale with the economic enterprise for the valuables which you reside in. The realtor does no longer choose you to do a short sale because of the fact then they does no longer get a comission. touch the economic enterprise in the present day and push for them to do the deed for lieu!
2016-10-18 10:02:37 · answer #4 · answered by Erika 4 · 0⤊ 0⤋