We currently own a house in another state that we had a so called friend buying contract for deed and she stopped making payments. She had been behind the whole 3 years she was there and I was too kind hearted and let it slide for too long. ( She has 5 kids) Anyway lesson learned. Now we have this house which has two mortgages on it, and the mortgage on the house we are living in. My husband wants to let the house in Kansas go back but I do not want a foreclosure on our reports. I have it listed with a realtor but have not had any luck selling. It needs some fixing ( new roof, gutters, floor fixed in bathroom, ceiling in back bedroom from roof leaking)but is worth what we are asking for it in that market. I was wondering if anyone knew anything about a Deid-en-lieu of forclosure. I know you turn over the deed to the mortgage company and they cannot get a judgement for a loss from the sale of the property against you. The info on the mortgage website says that it will not prevent you from getting a mortgage in the future. How is this reported on your report and how does it affect a future mortgage/credit? Is this still possible with two mortgages on the property and how does the 2nd mortgage company get their money? Any advice would be appreciated or alternatives to get rid of the house. I currently have a guy from Home vestors wanting to look at the property and I told him that we would take no less than what we owed on it. You know how they are. Try to get something for nothing. Thanks in advance for any advice, stewarts3x
Like everything, how something will be reported is up to the company which is reporting it. My sister and I had to do DLF for a house that we were forced to inheriit from our aunt, and that company is reporting a straight >FORCLOSURE< on the trade-line. Just as other users have noticed that turning a car over to the car company has occasionally been notated as a >REPOSSESSION< tradeline.
I suspect it would be annotated as a foreclosure. They are only relieving you of paying the difference. As for the second mortgage holder, I'm not sure if they sue you for their balance or not. I assume they could. There is nothing left to foreclose. You might want to call a real estate attorney and ask this question.
I'm in this situation right now but unfortunately don't have any advice just yet - I have a foreclosure on my first mortgage, from August and am being threatened with suit by the second morgager. One attorney has advised me to settle but I dont have much of an income and my husband is over extended. The second suggested that they don't have a leg to stand on against me, since it was secured and the asset was sold by the first lender, so they should sue the first lender and not me. The third suggested BK 7, which I don't think I can do because my husbands income is too high, even though all my debt predates our marriage and I don't have much income. For what it's worth, my foreclosure has hit the CRAs but my score is 553 - very low, to be sure, but I can still get a checking account and could probably find someone else to give me a mortgage in a couple years. Good luck - I know it's a crap situation. Poochie
