My Mother is in a significant bind with a large mortgage she must pay with her only source of income, Social Security Disability, after her Husband passed away. She would like to divest herself of the property, but the market is so bad, she hasn't received any offers. Can you give some advice about her options? My fear is if she forecloses, the mortgage company will come after her only source of income, again SSI disability. She is almost a senior citizen (64).

Thanks,

Laurie

From Greg-- about my deed in lieu of --- I live in Tucson now 2 years ago the deed in lieu of was for a house in Ohio.. I had thought maybe a fore-warning would apply as what I thought was going to happen according to the note holder was misleading as well as all the papers I signed. should have had an attorney as you say I agree. Thought I could trust what was discussed several times on the phone as papers had way too much jargon that really doesn't make sense to even the best of us.

Greg:
I have reviewed some of the answers to your question. Some I disagree with. Az is a no deficiency state when a home is foreclosed upon. There are some exceptions! . However please note that does not necessarily include deed in lieu of.... There was an article in the AZ star today in the business section regarding this vary subject. Try tucson.com to see if you can find the articel. If would be worth your time and money to consult with an AZ attorney.

Brian DeBrie

ouch
greg
you'll be paying cash for everything
for the next 7-10 years
did the bank file a deficiency judgement against you yet?
for the difference of what it sold for at auction
and what you borrowed
yes, you don't need to pay the tax on the difference
but you may have to pay the difference
guess that depends on the judge
maybe they take it out of your paycheck for the next 10 years

anyways

good luck

To make a long story abbrev. after 3 months of trying to sell my house I went thru a deed in lieu of foreclosure with my mortgage holder and was even current on my payments since I had already relocated. Thought it would be better than having them go thru a reg. foreclosure. It hit the credit report exactly the same as a foreclosure as far as trying to go thru new mortgage options and scores the same on the FICO. Was sent IRS forms about the forgiven debt that will noe be taxed also. On the difference they received on the resale. ( still will go thru a sheriff sale).

If you were to approach the mortgage holders about accepting a deed in lieu of foreclosure, as a
simpler and cheaper and less-harmful-to-your-credit way of accomplishing the same thing as foreclosure, which is your last (and least favorable) option. Of course, you want to be in personal contact with your mortgagees (talking to a live person, not just paying your bills) for at least a few months before that so they know what is going on, and can anticipate that you are doing your best to sell the house, and can maybe even help you out of the jam in one way or another. They usually don't like to foreclose, either; it's messy and expensive. However, a lender is not obligated to accept a deed in lieu of forclosure, If it would be disadvantageous to accept the deed, the lender can refuse the deed and proceed with the appropriate forclosure action against the borrower.