This topic contains 5 replies, has 1 voice, and was last updated by Anonymous 5 years, 4 months ago.
- May 5, 2011 at 8:26 am #203736
If i quick claim deed an investment house to my son how fast can he resell it? We have a buyer and need to turn it fast so he can buy a house with the cash. There is no mortgage on the property and will sell for $30.000. Does he have to register the deed and wait or can he resell it with another quick claim deed? Also if it is a gift he should not have to show it as an income or should we make a loan contract with him to pay us back?
- May 17, 2011 at 5:39 am #428701
A Deed in Lieu of Foreclosure is only slightly better than the foreclosure itself. Think 10 years on your credit report and the repercussions from that. Some times a letter of explanation can help and allow you to get another mortgage.
- May 17, 2011 at 5:45 am #428702
A Deed in Lieu is only slightly better than a foreclosure for credit purposes. It still shows your inability and/or reluctance to honor the debts which you incurred. Even though you see no other way out of this situation, it’s still going to ding your credit very seriously. Look at a minimum of five years before you will again be considered sufficiently creditworthy to be granted a home mortgage.
- May 17, 2011 at 6:29 am #428703
Probably about 3 to 5 years.
FHA, if you have a property they will finance, will sometimes do it in 2 years.
I can tell you now it will be critical that you have a PERFECT payment history on everything else if you do a Deed in Lieu.
I used to be an underwriter, and if you have a former foreclosure or a bankruptcy, you have to go through different underwriting guidelines than someone else.
- May 17, 2011 at 6:44 am #428704
I can’t believe I’m suggesting this, but…first, if you are still current on your mortgage in FL, then there are no dings on your credit. You can apply for a mortgage NOW in NH. Before there is anything sizeable on your credit. The lender might want to make sure that you are selling/getting rid of your condo in FL, but you might be able to swing qualifying without actually selling the condo first or giving it back to the lender.
However, if you have already defaulted AND it has been reported, in the current market it is going to be VERY difficult to get another mortgage this close to a default/deed in lieu
- January 3, 2013 at 6:30 pm #428705
My advice would be to try to get your new purchase done before the deed in lue. I had excellent credit before my deed in lue. I signed it in January and moved out. They waited till November to file it and in the mean time they were reporting me late. And for a year after they filed the deed in leu they still reported me late.
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