Deed In Lieu of Forclosure

[Lisa Wilson]

What is the name of your state? TN
What are the positive points for the borrower to do this.. Can the mortgage company still come after you for the unpaid balance after the sale?

[HomeGuru]

Originally Posted by Lisa Wilson

What is the name of your state? TN
What are the positive points for the borrower to do this..


**A: one point is the mortgagor is relieved of the foreclosure litigation action.

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Can the mortgage company still come after you for the unpaid balance after the sale?

**A: yes they can.

[HUD-1]

See if the lender will agree, in writing, to NOT pursuing a deficiency judgment. If they agree to this, they will not pursue you, however, you may or may not have a tax liability due to forgiven debt. It depends on your solvency at the time of the DIL(check IRS rules). Your credit will still be harmed though, with a DIL.