It will be difficult to have a deed in lieu approved if you have surplus funds in an amount enough to buy a 2nd home. The bank is going to want more skin in the game for you to be release from your obligation. So, don't expect them to roll over...Banks don't approve DILs when there are junior liens that exist, but since you have a junior with the same lender that could be worked out - just not a guarantee they will approve. You may want to think about paying off the junior lien to have a better chance of getting the primary mortgage approved for a DIL...but they will not allow a DIL while paying off the 2nd on terms...must be removed completely or some other terms worked out.
Most times when you are approved for a DIL you are forgiven of the remaining deficiency amount but you will be 1099d...it is a gov't requirement. Now, you should speak to your cpa about IRS form 982 which needs to be filed to get a waiver for the taxes due on the forgiven amount...your cpa will evaluate your specific case and be able to determine if you qualify for the tax waiver.
You should speak with a foreclosure or bankruptcy attorney about the wage or pension garnish concerns...I hope things work out for you. Tom Hinz www.shortsaletosell.com... more
It really depends on the landlord in question and the treasons for the foreclosure. I find that some landlords are forgiving because they understand the times and especially if you can prove you are on the mend.
You still have a signed legal document that states that you have the legal right to live in your apartment as long as you continue to pay your rent and the landlord must recipricate. No matter who the landlord is.
You are protected by the lease to live there for the entire term of the lease. If you do decide to leave prior the the term, you can find yourself in a legal battle for not living up to your lease. And if the bank does take over, which may not happen, the bank will have extremely good resources to recover the lost rent dollars.... more
I'm assuming you signed a contract for a bank owned property. Bank owned properties are sold as is and no disclosure can be made by the bank [in this case the bank is the seller] because they have never occupied the property nor have they ever even been to the property. But in any event, if you signed a contract to purchase, did you read and were you explained what you were signing? Did you hire an attorney to represent you during the attorney review? If so, did your attorney review and explain the contract to you? Typically there is a backout clause for inspection issues although banks ususally never repair any issues that arise during inspection as its usually listed and sold in as is condition but again your attorney should have explained this to you. If haven't already, you need to retain the services of a real estate attorney.