Dil Or Short Sale W/ Bofa In Md

jjIII

LoanSafe Member
Jan 24, 2012
8
2
3
Hello,

Coming back to LS years after they saved my home in Maryland!

I apologize if this has been posted before-

I had to relocate to Florida due to work 2 years ago. My home in Maryland has a 300k mortgage. We have tried to rent and have gotten screwed a couple of times. we have been paying the mortgage up there until 3 months ago. We just could not do it anymore.

Questions-

The key objective for our family is to not have the bank come after us for the deficiency on our new home in Florida. The home in Maryland is upside down by ~80k and we have much more than that in equity in our home in Florida. I was able to purchase this home with a VA loan and at this point I am ready to give up on the house in Maryland. I have been trying to be responsible but the stress and money in repairs it is not feasible any longer.

Should we do a DIL or Shortsale in MD while our primary residence is in FL.
What approach is best to have debt forgiven.
Should we get a lawer?

Thank you very much for any advice. As I stated above. This forum saved our home years ago.
 
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Moe Bedard

Call 1-800-779-4547
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Aug 10, 2007
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Hello and welcome back!

I'm sorry that you are having to deal with this again. But I'm glad we could help you in the past and let's see if we can do the same this time.

It is very tough to get a lender to forgive debt regardless of the loan workout method you use.

Maryland is a recourse (deficiency) state and they can come after you for the deficiency.

A deed in lieu of foreclosure would be your best bet. But in my experience, a deed in lieu is one of the hardest loan workouts to accomplish. I probably have only seen about 10-20 in the last 10 years. With that said, I would still try but also prepare mentally that it will most likely not be approved.

The next best would be a short sale. These can be tough as well. The key to a successful short sale usually is with hiring the right agent who has a long track record in selling short sales. These agents know the short sale ropes and will work their tales off to get the sale through. They may also be able to get the debt forgiven if they are real good.

Hiring a lawyer will probably do you no good whatsoever other than wasting your hard earned money. I have seen well over a thousand people hire lawyers at $3-$5k a pop and I would say that 99% of them got absolutely no help and their lawyers actually made things worse.

Your last option is bankruptcy. If you do get sued and can't afford to repay, you can file bankruptcy to discharge the debt.
 

jjIII

LoanSafe Member
Jan 24, 2012
8
2
3
Hello and welcome back!

I'm sorry that you are having to deal with this again. But I'm glad we could help you in the past and let's see if we can do the same this time.

It is very tough to get a lender to forgive debt regardless of the loan workout method you use.

Maryland is a recourse (deficiency) state and they can come after you for the deficiency.

A deed in lieu of foreclosure would be your best bet. But in my experience, a deed in lieu is one of the hardest loan workouts to accomplish. I probably have only seen about 10-20 in the last 10 years. With that said, I would still try but also prepare mentally that it will most likely not be approved.

The next best would be a short sale. These can be tough as well. The key to a successful short sale usually is with hiring the right agent who has a long track record in selling short sales. These agents know the short sale ropes and will work their tales off to get the sale through. They may also be able to get the debt forgiven if they are real good.

Hiring a lawyer will probably do you no good whatsoever other than wasting your hard earned money. I have seen well over a thousand people hire lawyers at $3-$5k a pop and I would say that 99% of them got absolutely no help and their lawyers actually made things worse.

Your last option is bankruptcy. If you do get sued and can't afford to repay, you can file bankruptcy to discharge the debt.
Maurice,

Thank you so much for the advice.
I do not want to have a bankruptcy. We really were looked after by God and have 200+k in equity in our new home we purchased. Does this mean they can come after that?
I feel like I am back on the hamster wheel way back when. I have been paying 2 mortgages and am at the short end of the stick.
I will try the shortsale route with a hope they will forgive the remainder. But when talking to BofA they say until it is approved they cannot guarantee anything. This has me nervous. I really do not want to; but if I have to try and rent this thing again I will. As long as I can work out the 4 months past due.
I truly appreciate this place. Eric was one of the first people I called to get the mortgage on my new home.
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,851
466
1,000
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Southern California
www.loansafe.org
You are welcome and thank you for the kind words.

Yes, they can come after any of your assets. They would first have to file for a deficiency judgment and then file to collect from you in Florida so they can pursue you legally under Florida law. This doesn't not mean they will, but they can and may come after you so you need to prepare for that.

Your only options to protect that equity etc. is to work out the past due by making the loan current and rent it out or do a short sale or deed in lieu with mortgage forgiveness.

I wish you the best of luck!
 

jjIII

LoanSafe Member
Jan 24, 2012
8
2
3
You are welcome and thank you for the kind words.

Yes, they can come after any of your assets. They would first have to file for a deficiency judgment and then file to collect from you in Florida so they can pursue you legally under Florida law. This doesn't not mean they will, but they can and may come after you so you need to prepare for that.

Your only options to protect that equity etc. is to work out the past due by making the loan current and rent it out or do a short sale or deed in lieu with mortgage forgiveness.

I wish you the best of luck!
############
Thank you Maurice,
I will let everyone know what action I take and give a play by play. That is what helped me. If I make a mistake and can help someone; its worth it.

Cheers,
Joe
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,851
466
1,000
49
Southern California
www.loansafe.org
My pleasure Joe and sound good. Paying it forward is the way to go :)
 

tgeoghegan

LoanSafe Member
Jul 25, 2012
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6
HI jjIII
ANy update on your situation. I'm also in MD and looking for more information.
Cheers.