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Sometimes you need to give up your Home and walk away... as a last resort
February 27, 2007
A deed in lieu of foreclosure is becoming a viable option for many homeowners who find themselves upside down or unable to sell the property. In this option you can walk away from the house with no longer any responsibility to the mortgage company. As indicated in this article many people are faced with this alternative. It is damaging to your credit but not as much as a full foreclosure. It appears with the loss of jobs in Michigan many families may have to turn to this is an option.
- This is an excerpt from an article posted by the The Detroit, by Ron French - February 25, 2007. …”With a job in Indianapolis and dim prospects for selling their home, the Wirgaus are considering handing the keys back to the bank and walking away from their home.
They are among a growing number of Michigan families asking lenders to take their homes off their hands. That trend, paralleling a rapid rise in foreclosures, illustrates the desperation some families feel as home values fall below their mortgage debt.
That process, called a deed in lieu of foreclosure, is an agreement to give up all ownership rights in a home or piece of property to the lender.
It's not a good option for anyone, but it's often better than the alternative. Homeowners' credit ratings are hurt, but not as much as in a foreclosure; the lenders lose money on homes now worth less than the outstanding loan, but lose less than the cost of a foreclosure proceeding…” www.detnews.com
Related Entries
- Be aware of the foreclosure timeline in Michigan - February 22, 2007
Comments
With a deed in lieu will a homeowner receive a 1099 and have to pay taxes on the forgiven portion in Michigan???
How much time do I have left in my home from the time a mortgage company notifies me an in lieu of deed foreclosure on my home? Please respond soon.
Due to my husbands health issues we are wanting out of our house, so we can move in with our daughter, so she can help. Our mortage loan is in his name only with CountryWide. We have had the house on the market for about 4-5 months now, with no activity at all. We are thinking about doing a deed in lieu of forclosure. How long do you think we would be able to stay in the home before they approve of the deed and want us to leave the property?
have you considered a short sale? that may be another option and it would avoid foreclosure and will look on your credit as a pay off.
Will a lender accept a deed in lieu of foreclosure if the property is a 2nd home? Can they come after me for equity in my primary residence?
Will a lender accept a deed in lieu of foreclosure if the property is a 2nd home?
first mortgage $125,000
Second Mortgage 30,000
first mortgage $125,000
Second Mortgage 30,000
I live in Maryland and I'm in a similar status as many of you are-I'm having trouble selling my condo and the property is worth nearly 75K less than I purchased it for because the developer is now selling similar condo's for 75K less. I owe what he's asking for new!! Would this type of transaction work for me? I'm at wit's end as it is.
My husband and I bought a house about four years ago. It was our first time buying. To make a long story short we really got screwed. There has been alot of problems with the house since we moved in. We did purchase a home warranty houwever it wouldn't cover the repairs. Then about two years ago went went to Beneficial to try and refinance our house. They told us that we needed to take out a second mortgage to clear up some items on our credit. If we were to pay on time every month for six months and keep our credit cards down to a 0 balance they would refianace our first and second mortgage.They also gave us a laon based on market value instead of by an appraisal. We now owe more than our house is worth. Our first mortgage is at 11.12% and the second is at about 19.98%. We have tried contacting real estate agency and seeing about putting our house up for sale but no-one wants to mess with it due to us owing more than the house is worth. I have also contacted the first mortgage about short sale and voluntary foreclosure. They did give me the information I needed. However, the secoond mortgage(Beneficial) don't want to give me any information about any of this. They call and harrass me at least ten or more times a day. We don't qualify for bankruptcy, there for we just want to walk away. However, We are really stressed about what is going to happen next. We already have a another place to live. But am concern about what the second mortgage will do. I did report them to BBB. I know that really wouldn't matter much. Any advice?