QUESTION
Can we ask our primary lender for a deed in lieu of foreclosure if we have a second mortgage lien on the house?
Asked on Sep 18th, 2012 on Foreclosures - California
More details to this question:
It has been 18 months since our discharge and our financial situation has greatly improved. I have a good paying job and a down payment that would allow me to purchase a new home. It is my understanding that after 24 months from discharge, we can apply for a loan. However, the home has not been foreclosed yet. I understand that if it is, then we would have to wait an additional three years after foreclosure. We don't want the foreclosure to happen before our 24 month period is up. We have a chance to apply for a loan. We did have a second mortgage, which was also in our bankruptcy filing so we owe nothing.
2 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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This is a very complex set of questions. It depends on the state where your property is located, whether or not the property is worth more than the debt to the first lender, etc. You are wise to contact an attorney in the state where the property is located for advice. Make sure this attorney is experienced in both real estate and bankruptcy laws.
Answered on Sep 21st, 2012 at 2:13 PM
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You are in a complicated situation. The primary lender is not required to accept a deed-in-lieu, and probably won't wont in light of the second-even though the second was discharged in BK. More importantly, a deed-in-lieu will have the same effect on your ability to get a new loan as a short sale or foreclosure (assuming you truthfully complete the loan app for the new loan). I do a $295 consult, which will give you about 60-90 mins of my time.
Answered on Sep 21st, 2012 at 2:13 PM