How can I get a deed in lieu of foreclosure approved?
This article gives you excellent advice if you're trying to get a deed in lieu of foreclosure approved by your mortgage company. She talks about what you can do in any tax implications that may be involved. Here is some more information on a deed in lieu of foreclosure that might help. The thing to keep in mind is you have to show the mortgage company you can no longer afford the house and they will be more quickly to respond.
- This is an excerpt from an article posted by Columbus Dispatch, by ILYCE GLINK - Sunday, Feb. 25, 2007.
“Q: In a past column, you advised that offering a deed in lieu of foreclosure is a last resort.
I’ve tried to sell my property for more than two years. I’ve consulted an auctioneer, but he doesn’t think I can sell the property. I can’t rent the unit because it’s in an owner-occupied building and I can’t get a waiver of the rules. I’ve moved because of my job.
I’m low on money and soon will start missing mortgage payments. Can I give it to the bank before it takes action? Can I offer the deed in lieu of foreclosure without hurting my credit?
A: Unfortunately, there’s no way to do a deed in lieu of foreclosure without hurting your credit unless you can get the lender to report your mortgage paid in full.
Talk to your financial institution and see whether you’re a candidate for a deed in lieu of foreclosure. You might not be if you’re current on your mortgage payments. You might want to consult a real-estate lawyer.
Your only choice might be to sell the property for whatever price you can get, even if you sell at a loss, and then get the lender to accept a "short sale" — a sale in which the proceeds aren’t enough to cover the amount owed, but the lender accepts the payment.
You might face tax issues. The Internal Revenue Service would likely treat the forgiven part of the debt as income, even though you wouldn’t have received any cash…”
Post a Question or Comment
Search The AFS Blog
IMPORANT NOTICE – PLEASE READ There is no guarantee you will receive a loan modification. Even if you accept this offer and use our service, your lender may not agree to change your loan. Loan Modification approval is dependent on criteria including but not limited to hardship, income, debt ratios. American Foreclosure Specialists is not a Bank, nor a government agency or government affiliate. Our services are not approved by the government or your lender. American Foreclosure Specialists assists in the document preparation, working with and communication with your Mortgage Bank in the attempt to acquire an approved Loan Modification. If you stop paying your mortgage, you could lose your home and damage your credit rating. Loan Modification Plans are dependent upon mortgage company criteria and financial information gathered as part of the efforts of AFS. The information and notices contained on this website are intended as informational and should not be regarded, as financial or legal advice. AFS attempts to ensure that the material contained on the website is accurate and complete at the date first published, however you should recognize that information contained on this website may become out of date over time. Readers who have particular questions regarding real estate law, finance, or who believe they require legal counsel, should seek the advice of a financial advisor or an attorney. Submitting a contact request, gives AFS consent to contact you by telephone and/or email, even if you have previously listed yourself on any state or federal Do-Not-Call List.