In liue of forclosure

Anonymous · ‎08-25-2007

I just am a bit confused. We were going through a difficult time when I my husband lost his job.
we tried at the time to make a partial payment to avoid forclosure. Bank would not accept, house was sold for 98,000, and they gave us the 1099a,89,000/fmv 86700 on top of that they listed us as forclosure process iniated 120 days /$7015 behind on our credit report. when in fact they got all their money back,only to recently find out it was deed lieu of forclosure.

any thoughts?

thank you

Tuscani · ‎08-25-2007

It is still looked at as a foreclosure from an underwriting stand point

Anonymous · ‎08-25-2007

I may be going down foreclosure lane in the near future and want to know how will this effect me in the future when trying to get a new home loan?

Tuscani · ‎08-25-2007

myhearts07 wrote:

I may be going down foreclosure lane in the near future and want to know how will this effect me in the future when trying to get a new home loan?

If my memory serves me, you will need to wait at least 3 yrs before you will be able to go for any government backed mortgage. You will also, again trying to go from memory, cure any deficiency before being able to get either an FHA, VA, or any other government backed mortgage. That will include the amount covered by PMI.

With that said... There are mortgages that you should qualify for. They will not be either government or conforming though. You will probably be in the subprime arena for years to come.

demitasse03 · ‎08-25-2007

Having been there, I can tell you that a foreclosure on your record makes it really difficult to get a mortgage for at least a few years. Do everything that you can to avoid this. See what programs your bank, FHA, etc., has to help you avoid this devastating result. Are you able to sell your home at this point? Do you have any equity in it?

Anonymous · ‎08-25-2007

No one is buying out here. Too many foreclosures available already. We have about $50k in equity. Been trying to refi, it's not the scores, it the income. We don't have enough to do what we really need to do without getting jacked on the interest rate, prepay penalties and an outrageous payment that does not include the property taxes.

How badly did your scores drop? Have you recovered?

Message Edited by myhearts07 on 08-25-2007 02:48 PM

Anonymous · ‎08-25-2007

I know this is not what you want to hear, but try to do everything you can to sell rather than take foreclosure. Foreclosure right now is going to hurt you so much if you need to get another home loan in the next couple of years.

Again, I know this is not what you want to hear, but it would still be better to sell and downsize.

Anonymous · ‎08-27-2007

So a deed in lieu looks just as bad as a foreclosure? We are trying to do a short sale. Got behind on our mortgage a while back. Our neighborhood went way down, and we can't sell this house for what we owe. Bought for 112K, listing for 98K. Don't have the money to make up the difference. No bites though. We have got to get out of this neighborhood though for our kids asap and our time they allowed for a short sale is almost up. Any ideas to save our credit?

Anonymous · ‎08-27-2007

Hey MyHearts- I have several friends that are real estate investors in my area (MD) and they rescue people out of foreclosure all the time. What they do is they will purchase your home for less than market value and then either rent it out or sell it to make a profit. For example, if your home is worth 150K and you owe 90K on it, they will negotiate with you and come to a midway point that will make sense to both of you. Lets say you agree on 125K. They buy your house for 125K, you get 35K in your pocket ( 125 - 90 = 35 )and your mortgage is paid free and clear, you can rent back or move out, they can sell if you move out and make a small profit for themselves. This way there is no foreclosure scar on your CR. It may not be the perfect solution but it still is better than going through a foreclosre! Have you ever seen signs in your area that say "We will Buy your house for Cash"?? These are real estate investors. Give them a call! Best of Luck!

Anonymous · ‎08-27-2007

n/m

Message Edited by jcmycology on 08-27-2007 08:34 AM