Option  #6   “THE DEED-IN-LIEU OF

                        FORECLOSURE”

The deed-in-Lieu of foreclosure is when you give up and deed your home back to the Bank. The Bank will always accept this; however; it’s not a good option. The reason it’s not a good option is because the Bank could come after you, the homeowner, for a deficiency judgment.

Let’s explain what a deficiency judgment is…it’s when the Bank takes back a house that has a mortgage balance of $200,000. The house is worth $200,000, and the Bank ultimately sells the house for $150,000. This $50,000 that the Bank does not receive from what was owed to what they sold it for is the deficiency. They will chase the homeowner for the amount due. The Banks do not tell you that they will chase you for that balance.

Remember, the Banks are in business to make money. This is really never an option, unless you get it in writing from a Bank that they will not chase you for a deficiency judgment or 1099 you, on your taxes. A 1099 is ordinary income to you that is reported to the IRS. If you were in the 30% tax bracket, you would have to pay approximately $15,000 in taxes to the IRS for losing your home. This is not what you want, don’t you agree? 

If you have any questions about this, please contact me at 215-778-8140.

                                      Good Luck and God Bless 

Take Action Request

Name___________________________________________________________________

Subject Property Address__________________________________________________

City ___________________________________State___________  Zip Code _________

Mailing Address (if different) _______________________________________________________________________ 

Home Phone: _________________________Work Phone _________________________

Cell Phone: ________________________E-mail Address  ________________________

Property Type :

Primary Residence Second Home Town House  Investment Property

Year Property was Acquired ________________________________________________

Present Value of Property  __________________________________________________

            How did you arrive at this fiqure: _________________________________________

First Mortgage Lender ______________________________________________________ 

Amount Owed on First Mortgage    ___________________________________________

Monthly Payment   ________________________________________________________

Second Mortgage Lender   __________________________________________________

Second Mortgage Balance (if any)  ___________________________________________

Second Mortgage Payment  _________________________________________________

How Would You Describe Your Non-Mortgage Credit? 

(Circle One)      Excellent    Good     Fair      Major Credit Issues

How Far Behind Are You?  (Please circle one)

30-60 Days Most of the Time Sometimes 120+ Days

Ever had a Bankruptcy? 

Never Declared  -Not yet - discharged Less than 1 year - 1 year - 2 years - 3 years 4 years - 5 years - 6 years - 7 years

Is your property schedule for Sherriff Sale?  ____________ If yes, when ____________