In California, the 1st lien-holder may/ may not accept a "deed-in-lieu of foreclosure" then liquidate the property. Ina purchase money scenario,The 2nd lien holder (Junior or subordinate lien) would lose all rights to collect as their interest was secured by the property itself.
In a HELOC or cash out, the bank may or may not pursue collection or deficiency but it would be considered a recourse loan.
Listen, the banks prefer you short sale as they lose less and can turn the property around faster. It is also the responsible thing to do and we are 95% successful in getting total debt forgiveness with 1st's and 2nd's. There are many proficient Realtors here ( Including me) who would take control for you and short sale the property. We also handle all discussions with the banks and rarely are you asked to even speak with them again.
The best part...There is no charge for my services, the bank pays all fees in the short sale.
I can handle it all for you,please contact me if interested.
Short Sale Specialists
I have a chart that gives you all of your time frames for each scenario and it covers all types of loans. Please contact me and I'll be glad to email it to you. It is very comprehensive and should answer all of your questions.
Hi!! I can help!! Please give me a call. My number is 951-514-7854 or you can email me at email@example.com. I have helped numerous home buyers in your same situation. I look forward to speaking!... more
It'll only take another hit if the mortgage reports the foreclosure/deed-in-lieu... as foreclosures & deed-in-lieu of foreclosures do not appear in the "public records" section of a credit report. However once a mortgage is included in bankruptcy I normally do not see any further activity on them afterwards, so I would say it's unlikely you'll see further damage to your credit score, but it's a possibility they will report it.
When it comes to qualifying for a mortgage, lenders will start the foreclosure/deed-in-lieu seasoning period from when that event actually happened, and not the bankruptcy discharge date.
Shane Milne | Lending in all 50 states | NMLS #81195... more