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12-12-2006, 02:29 PM
| | Junior Member | | Join Date: Dec 2006 Location: Northern KY
Posts: 4
| | | Is "deed in lieu" a reasonable option here?
What is the name of your state? NH
We completed a semi-voluntary move (not required by my work, but essential to us for health and other reasons) out of New Hampshire in August. However, our old home has not sold despite substantial price lowering (started at 259k). We are now out of any funds we could use to pay the extra mortgage (we've made all payments thus far), so we must either find a buyer NOW (which would probably require a short sale), or request a deed in lieu.
Details: The New Hampshire home is an 80%-20% mortgage, but both loans are held by Citimortgage. So is the loan on our new home. We owe about $238k and the current asking price is $224,900 (so we are already looking at a short sale). If the damage to our/my credit (I am the only mortgageholder on the NH home) is not going to be substantially different for a short sale vs. a deed in lieu, I would think the deed in lieu is a better option (since we still have no buyer in sight).
What do any of you think?
Thanks,
Steve
Last edited by swale; 12-12-2006 at 02:30 PM.
Reason: extra words at bottom, misspelling
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12-12-2006, 03:11 PM
| | Senior Member | | Join Date: Nov 2005 Location: South Cackalacky
Posts: 15,044
| | | Has your lender agreed to this? It is not a common thing. |
12-12-2006, 03:35 PM
| | Junior Member | | Join Date: Dec 2006 Location: Northern KY
Posts: 4
| | Quote:
Originally Posted by moburkes  Has your lender agreed to this? It is not a common thing. | No, we haven't gone to them yet (in case we got a buyer). I don't know if they will agree to anything at this point - it's too early in the process to get them involved (but we will soon). We are trying to gauge probable reactions here - this is really the first step we are taking.
-Steven- |
12-12-2006, 03:42 PM
| | Senior Member | | Join Date: Nov 2005 Location: South Cackalacky
Posts: 15,044
| | Quote:
Originally Posted by swale No, we haven't gone to them yet (in case we got a buyer). I don't know if they will agree to anything at this point - it's too early in the process to get them involved (but we will soon). We are trying to gauge probable reactions here - this is really the first step we are taking.
-Steven- | It is not likely to happen. Call them. Ask them. |
12-12-2006, 03:45 PM
| | Member | | Join Date: Feb 2002
Posts: 517
| | | Most deed in lieus I have been involved with are a result of a failed short sale. In other words, there is a delinquency due to unforseen circumstances, the borrower is an owner occupant, the lender then approves the marketing of the house based on a BPO, with the contract being subject to their approval. The house ends up not selling after a reasonable amount of time on market and the lender therefore accepts a deed-in-lieu of foreclosure.
Call your lender! They may not entertain any of this for what is now a second home... |
12-12-2006, 03:59 PM
| | Junior Member | | Join Date: Dec 2006 Location: Northern KY
Posts: 4
| | Quote:
Originally Posted by moburkes It is not likely to happen. Call them. Ask them. | I"ll call them tomorrow; I'm waiting to confirm that the price drop has not stirred up interest from my realtor.
Assuming you are right and Citimortgage tells me to go pound sand instead of wanting to move toward a deed in lieu (or to okay a short sale with a much lower price than has been offered so far), what's in it for them? That particular attitude by the lender would almost surely lead to a full-blown foreclosure, which is more costly than what I propose. Why would they act in a way that costs them more money in the long run?
-Steven- |
12-12-2006, 04:13 PM
| | Senior Member | | Join Date: Nov 2005 Location: South Cackalacky
Posts: 15,044
| | | It won't cost them more money. It will cost you more money. All of those charges will be passed along to you. They will stay on your credit report. They will attempt to garnish your pay checks and your bank accounts. |
12-12-2006, 04:17 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | Quote: |
Assuming you are right and Citimortgage tells me to go pound sand instead of wanting to move toward a deed in lieu (or to okay a short sale with a much lower price than has been offered so far), what's in it for them?
| In addition to what moburkes said, the 20% equity you have in your current home.
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12-12-2006, 04:22 PM
| | Senior Member | | Join Date: Nov 2005 Location: South Cackalacky
Posts: 15,044
| | Quote:
Originally Posted by tranquility In addition to what moburkes said, the 20% equity you have in your current home. | Forgot about that. Thanks!  |
12-12-2006, 04:27 PM
| | Junior Member | | Join Date: Dec 2006 Location: Northern KY
Posts: 4
| | Quote:
Originally Posted by moburkes It won't cost them more money. It will cost you more money. All of those charges will be passed along to you. They will stay on your credit report. They will attempt to garnish your pay checks and your bank accounts. | That's exactly why I want to avoid foreclosure! So, when I call the lender, should I couch it entirely in terms of wanting a short sale?
-Steven- |
12-12-2006, 07:59 PM
| | Senior Member | | Join Date: Nov 2005 Location: South Cackalacky
Posts: 15,044
| | Quote:
Originally Posted by swale That's exactly why I want to avoid foreclosure! So, when I call the lender, should I couch it entirely in terms of wanting a short sale?
-Steven- | A short sale isn't good for you either. Unless you can sell this house quickly, and for the amount of the loan, your credit, your paychecks, and your equity in your current home will all take a dive. |
12-12-2006, 08:00 PM
| | Senior Member | | Join Date: Oct 2006
Posts: 1,125
| | Quote:
Originally Posted by moburkes Forgot about that. Thanks! | Youse is both reading it wrong. That is an 80% loan, a 20% loan, and the new house loan and what do you want to bet the new home is financed to the hilt as well?
The New Hampshire home is an 80%-20% mortgage, but both loans are held by Citimortgage. So is the loan on our new home. |
12-12-2006, 08:06 PM
| | Senior Member | | Join Date: Nov 2005 Location: South Cackalacky
Posts: 15,044
| | | Thanks for the correction. In either case, she is (for whatever reason) NOT expecting to take a hit for this. This will affect your credit for a LLLLLLLLLLLOOOOOOOOOOOONNNNNNNNNNNNNNGGGGGGGGGGGG time.
If you end up filing BK, who knows what CITI will be allowed to do with the current home, right? | |
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