Deed-in-lieu And Judgment
Please advice.
If the the mortgage payoff is100K and lender approves SS for 70K does the lender write off the 30K loss and forgive (new law?) the home owner? Or file a judgment of 30K OR send them a 1099 for 30K?
If the SS is not approved can the lender sell the property at auction for 70K and still file a judgment OR 1099 for 30K?
So which of the cases is better for the home owner?
If the owner just returns the deed does any of the above apply? How bad would this be compared to a foreclosure on credit?
Thanks much for the response!
I have heard investors getting paid by lender for deed-in-lieu i.e. investor tells lender "I will have the owner deed you the property if you pay me $1000". Anyone done that?
Can the owner say that to lender and get the cash?
Logically the lender will save time and money in doing this rather than waiting 7-10m to get the prop back