Deed in lieu of foreclosure??

[Jonathondavid]

What is the name of your state? Michigan

I have a Construction loan that we have been trying to find an end loan for. We do have 20% equity in our home. The Construction loan is not on our credit. We are running out of time. If we give the bank the deed in lieu of foreclosure what can they charge us for and could they put it on our credit. We are not behind on our payment our credit score just droped.

[HomeGuru]

Originally Posted by Jonathondavid

What is the name of your state? Michigan

I have a Construction loan that we have been trying to find an end loan for. We do have 20% equity in our home. The Construction loan is not on our credit. We are running out of time. If we give the bank the deed in lieu of foreclosure what can they charge us for and could they put it on our credit. We are not behind on our payment our credit score just droped.

**A: the answer is contained in your mortgage docs. Please read it. If you then have specfic questions, please post them.

[Jonathondavid]

Looked over information... Yes the can charge me for almost everything under the sun. I guess my question is will a deed in lieu of foreclosure stop a foreclosure from costing me everything?

[HomeGuru]

Originally Posted by Jonathondavid

Looked over information... Yes the can charge me for almost everything under the sun. I guess my question is will a deed in lieu of foreclosure stop a foreclosure from costing me everything?

**A: thank you for reading. please define everything.

[Jonathondavid]

Originally Posted by HomeGuru

**A: thank you for reading. please define everything.

Everything beeing the typical mortgage type stuff. The cost of the loan, intrest, attorny fees recording fees title work.. The house should cover it but if it does not, we would have to pay the difference and we would have a forclosure on our credit. Right now as a construction loan, it is not on our credit. I realy feel we got a bait and switch type of loan once I re-read everythig over. (to good to be true) Now we just need out...

[Jonathondavid]

If anyone has any other idea please let me know......

[HomeGuru]

Originally Posted by Jonathondavid

If anyone has any other idea please let me know......

**A: read your original post and explain.

[Jonathondavid]

Originally Posted by HomeGuru

**A: read your original post and explain.

Any other way out.... Or can anyone help save our house..

[HomeGuru]

Originally Posted by Jonathondavid

Any other way out.... Or can anyone help save our house..

**A: we have no idea as to the specifics. Read your confusing post.

[Jonathondavid]

Originally Posted by HomeGuru

**A: we have no idea as to the specifics. Read your confusing post.

Qualified for loan at 4.25% 3 year arm
Used banks appraiser.
Loan included the construction modifying to an end loan with one closing.
Built house at 80% loan to value.
Finished house.
The bank will not give us an end-loan.
They changed terms.
Told by other person at same bank never should have qualifyed in first place.
Told market can change might not have 80% loant to value.
Used their appraiser again came back fine.
We tried other banks.
This lowerd or credit score.
Credit score to now low for any other bank.
Not behind on payments.
Equity in house.
Bank going to foreclose saying we are in default because of no end loan.
Now market slowing to a stop.
Might not sell in time.
Might not sell for needed price.

If i give them a deed in lieu of foreclosure will they not go after me for fees and or the difference in the home price. What I owe and what they can sell it for.

[Whatamimissing]

Just a student

I think I had something similar, but this was in GA. Here we call it a C&P loan, Construction to permanent. You build house at cost, it appraises at market value, and that includes your down payment (20% +) and avoids PMI on the note. With mine, loan rolled over automatically. "end loan = mortgage note". If you have good credit and 20% equity you can get a note, even if it's subprime. Way better than losing it all. If I am being totally ignorant of something, may the wiser minds take mercy on me.

[Jonathondavid]

Originally Posted by Whatamimissing

Just a student

I think I had something similar, but this was in GA. Here we call it a C&P loan, Construction to permanent. You build house at cost, it appraises at market value, and that includes your down payment (20% +) and avoids PMI on the note. With mine, loan rolled over automatically. "end loan = mortgage note". If you have good credit and 20% equity you can get a note, even if it's subprime. Way better than losing it all. If I am being totally ignorant of something, may the wiser minds take mercy on me.

That is what we were doing from the start.

You build house at cost, it appraises at market value, and that includes your down payment (20% +) and avoids PMI on the note.

We have 20% equity. Now nobody will gove us a note. Our credit scores have droped because of them and other banks looking into this. The bank stoped the automatic role over. They came up with new terms.

[Jonathondavid]

What is the definition for "deed in lieu of foreclosure"?? And how can this be to the owners benifit?