PLEASE HELP...being foreclosed on because property is upside down

[Elaine Goepfert]

Jan 2023 I purchased a property in Cape Coral, FL. I purchased for $395,000 and rehabbed for $70,000. I took out a hard money loan with Kiavi for one year. I put up for sale with no bites then transitioned to a STR strategy then Kiavi told me they don't refinance unless it's a LTR so I found a renter and went to refinance. Right at a year I start the process of a refi and quickly find out that the renter wasn't paying high enough rent to cover Kiavi's requirements so I had to relist the property. I lost the renters due to them not wanting to cooperate for showings. Despite all of this I was still able to find another lender to refinance until the appraisal came in at $445,000 and everything fell apart. When I purchased the property one year earlier Kiavi gave it an ARV of $610,000! I did all the repairs per spec and under budget and was even able to add four palm trees to the front, a pool heater and fence in the backyard which should have made the value go up! However, the area has plummeted in value and I'm now upside down on this house. I've had it listed for months with one showing and one offer of $380,000.

I have never missed a payment but Kiavi will not negotiate their terms and insist on foreclosure and they just informed me they are moving forward with the foreclosure.  I put in $50,000 of my own money not to mention months away from my three kids while working on the home.  I'm proud of the house I created, it's beautiful & I even have a 5.0 rating on Airbnb.  I honestly feel like I've done everything right and am completely stuck.  I'm devastated and if anyone has any words of wisdom here I would just SO APRRECIATE any help/advice I can get.  I just don't know what else I can possibly do.

[James Hamling]

Quote from @Account Closed:

Quote from @Elaine Goepfert:

@James Hamling I'd like to know what your opinion is on how to get a "rock-solid" comp? I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number. So, to recap, I trusted my realtor and the comps sent to me by him and the lender and the ARV appraisal given to me by them.

So outside of being a realtor myself, how would you have accomplished getting this "rock-solid" comp?  I'm here to learn.

@Elaine Goepfert: Your comment: "I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number."

Those that say you have to do your own comps are not professionals....

Uh-huh.... So Bob, just curious how many flips you've done? ya-know, seeing as you feel like declaring I'm not a professional because I do things vs sticking head up my rear and hoping others do it for me. 

My credentials? 400+ flips, nearly a billion in transactions and over 4K units under management, experience/operations in 27 states, 5 countries, 3 continents..... So yeah, NOT a professional by any means because, ya-know, I did own comp's for flips.... 

Get a clue kid, get a clue....

[James Hamling]

Quote from @Bruce Woodruff:

Quote from @Account Closed:

Quote from @Elaine Goepfert:

@James Hamling I'd like to know what your opinion is on how to get a "rock-solid" comp? I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number. So, to recap, I trusted my realtor and the comps sent to me by him and the lender and the ARV appraisal given to me by them.

So outside of being a realtor myself, how would you have accomplished getting this "rock-solid" comp?  I'm here to learn.

@Elaine Goepfert: Your comment: "I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number."

Those that say you have to do your own comps are not professionals. A realtor's job is to properly advise you. A professional will take responsibility for what they did. 

You did what you should do. You paid professionals to do their job. They failed you.

The solution is to not use real estate agents in the future. Seriously.

I have not used agents in 30 years because of this type of nonsense.

You paid someone to do their job and they weren't up to the task and won't take responsibility. Don't fall for the trap that they blame you.

True statement. I would rarely if ever trust comps that are provided by the realtor that you're using. They have a huge amount riding on simply getting you to agree with them, they don't have to be right and they don't spend any time trying to get the perfect comp numbers. 

And my experience with appraisers is that they are all conservative and lowball the number. Remember their job typically is to make sure that the property will cover the loan amount. And that's all they care about, not the real value of the property.

As James said, it's imperative that you learn how to do your own comps, the only person you should trust is yourself.

More importantly, how could you ever know how correct for full of BS an agent is, if you yourself don't know how to comp? 

And if didn't run any numbers yourself. 

And I find it funny persons are all too happy to take a 6/7 figure action on "A" persons declaration of comp/what the #'s are but no-way do they trust "A" contractors 3,4,5 digit project numbers, no-way no-how no no no, gotta get 3+ bids right..... How's that make sense? 

So if spending more get less confirmation...... 

[Elaine Goepfert]

Ok, follow up question on doing comps yourself. If you are NOT a real estate agent and don't have access to the MLS how do you recommend going about this? Any sites or something else to go to or is it just better to get your own realtors license?

[Jon K.]

Quote from @Elaine Goepfert:

Ok, follow up question on doing comps yourself. If you are NOT a real estate agent and don't have access to the MLS how do you recommend going about this? Any sites or something else to go to or is it just better to get your own realtors license?

I've been using Propstream for years to run comps among other things. They have MLS data as well as data from other sources.

[Henry Lazerow]

Maybe look at DSCR loan many allow airbnb. Do you have any cash can add to it so you can finance at a bit lower ltv and just get it on long term debt even if have money stuck in.

[Bruce Woodruff]

Quote from @Elaine Goepfert:

Ok, follow up question on doing comps yourself. If you are NOT a real estate agent and don't have access to the MLS how do you recommend going about this? Any sites or something else to go to or is it just better to get your own realtors license?

This is really simple. Any source will do that will show you houses for sale, and houses recently sold, with pictures and a list of the amenities.

You definitely do not need MLS, that's highly overrated nowadays. I will use a combination of Zillow and Realtor.com and sites like that. They have all the info you need. For free.

[Steve K.]

Quote from @Account Closed:

Quote from @Chris Seveney:

Quote from @Bruce Woodruff:

Quote from @Account Closed:

Quote from @Elaine Goepfert:

@James Hamling I'd like to know what your opinion is on how to get a "rock-solid" comp? I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number. So, to recap, I trusted my realtor and the comps sent to me by him and the lender and the ARV appraisal given to me by them.

So outside of being a realtor myself, how would you have accomplished getting this "rock-solid" comp?  I'm here to learn.

@Elaine Goepfert: Your comment: "I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number."

Those that say you have to do your own comps are not professionals. A realtor's job is to properly advise you. A professional will take responsibility for what they did. 

You did what you should do. You paid professionals to do their job. They failed you.

The solution is to not use real estate agents in the future. Seriously.

I have not used agents in 30 years because of this type of nonsense.

You paid someone to do their job and they weren't up to the task and won't take responsibility. Don't fall for the trap that they blame you.

True statement. I would rarely if ever trust comps that are provided by the realtor that you're using. They have a huge amount riding on simply getting you to agree with them, they don't have to be right and they don't spend any time trying to get the perfect comp numbers. 

And my experience with appraisers is that they are all conservative and lowball the number. Remember their job typically is to make sure that the property will cover the loan amount. And that's all they care about, not the real value of the property.

As James said, it's imperative that you learn how to do your own comps, the only person you should trust is yourself.

I just had a call with one of the companies we use to sell our REO's. Over the past six months the realtor list price to final sales price was 30% delta which we told them flat out was unacceptable. They had every excuse in the book but these properties were cleaned out and there was nothing "hidden" and the agents they used were not ideal. Shame on us as well for not doing our own, but my point is, you need to look at everything everyone does for you.

@Chris Seveney: You seem to be fair minded and I beleive you are not an agent. This is a general response.

According to NAR, 98% of people see a house on-line before they even contact an agent. That is not agent driven.

Agents will "over value" to get the listing (I call it being deceitful, but I digress), then they reduce the asking price to try to get the sale. Agents "sell" a property because prices are going up, not because they have any special skill. They are "order takers" like used car "sales people".

During a stagnant or declining market, why aren't they selling as many properties as in a rising market? They have no skills. Sales skills are taught and honed. That is not what agents are. They are paper pushers, very, very expensive paper pushers. An attorney and escrow achieve the same result for far less.

A lender will only lend on what an appraiser appraises. Two appraisers will give different appraisals, tens of thousands of dollars apart. It's an opinion in a point in time. Appraisers have a license they want to keep, so they aren't going to go out on a limb to support an agent's number. It does no good to trust an agent on their numbers.

But, if an agent is hired to give numbers, they need to be honest and accurate and should be sued if they are not. There is no accountability for lack of professionalism and unsuspecting people pay the price.

And then the agent blames the client. Such a cheap shot! Very unprofessional.

I appreciate your point of view, but offer a different one:

1. How is buyers seeing a house online not agent-driven when all of those listings were entered by agents? Redfin, Zillow, Realtor, etc. are all IDX feeds from the MLS which is agent-driven. Try buying property in a country without a central MLS and see if it's better or worse.

2. As an agent I wish I could set the price of a listing, but that is the seller's decision 100%. Half the time sellers don't even look at the comps I send them, they already have a price in their mind that they want for the property (and it's often higher than what a buyer is willing to pay requiring multiple price drops to get it sold). I don't know any agent who recommends listing a property too high, that would be dumb. 

3. When sales volume is down, there are less sales to go around. Same for any product. Some agents still do well in down markets, others don't. Some agents have good sales skills, others don't. Same for any product.

4. I'm not sure what the point is here. An agent pulling comps and offering their opinion on the price isn't meant to be an appraisal, sounds like you are confusing the two. Usually an agent is guessing what a buyer will pay prior to listing a property, while an appraisal happens after the property has gone under contract at a certain price. Since there is already a contract in place saying a real buyer is willing to pay X amount, and an appraisal is an estimate of what the market will determine a property is worth, the contract price is usually what the appraisal comes back at or near in my experience. The listing agent doesn't have the benefit of having watched how the property performed on the market, or a contract stating what a real buyer is willing to pay, prior to making their best guess at the right price to list at. The market is always changing and not every property sells or appraises for exactly the listing price. Not sure why anyone would sue over this!   

[Elaine Goepfert]

Well, last night during dinner I officially got "served" foreclosure papers.  It was quite the slap to the face especially trying to explain to my kids who the person was at the front door (the carrier) and what all that meant.  That being said, they are aware of what's happening on this property as I try to share my mistakes & victories with my family.  I want them to see what it looks like to take a shot and they've got to see me speak on TV & stage, win awards & praise and they've seen me come home of stories of dead bats falling out of ceilings, cleaning up dog crap in dark basement corners, sucking out water from flooded basements for hours, bloodied, bruised, ect. ect. ect. and now be served with papers.  (Ah, the stories I can tell from working on homes but I digress...)

Most what I wanted to say is a big THANK YOU for all of you who took time out in your day to give me ideas/options.  A special thank you to those who did so without making me feel stupid and praising yourself for being so brilliant in the meantime but instead actually was humble, admitting your own mistakes and helping me learn from them.  I take it to heart and as I go forward, because I WILL go forward, I'll remember the kindness & humility in those responses and will try to mirror that.

Lastly an update: I'm actually working with the lender as we speak to do a deed in lieu, (foreclosure papers were already started I guess) something I've never heard of before NOT because I'm a novice but I AM new to having such a loss, this is a whole new ballgame that I am definitely learning from.  I would have never known this was an option had I not reached out to this community and I think it's saving me a foreclosure so I'm very grateful.

[Jay Hinrichs]

Quote from @Elaine Goepfert:

Well, last night during dinner I officially got "served" foreclosure papers.  It was quite the slap to the face especially trying to explain to my kids who the person was at the front door (the carrier) and what all that meant.  That being said, they are aware of what's happening on this property as I try to share my mistakes & victories with my family.  I want them to see what it looks like to take a shot and they've got to see me speak on TV & stage, win awards & praise and they've seen me come home of stories of dead bats falling out of ceilings, cleaning up dog crap in dark basement corners, sucking out water from flooded basements for hours, bloodied, bruised, ect. ect. ect. and now be served with papers.  (Ah, the stories I can tell from working on homes but I digress...)

Most what I wanted to say is a big THANK YOU for all of you who took time out in your day to give me ideas/options.  A special thank you to those who did so without making me feel stupid and praising yourself for being so brilliant in the meantime but instead actually was humble, admitting your own mistakes and helping me learn from them.  I take it to heart and as I go forward, because I WILL go forward, I'll remember the kindness & humility in those responses and will try to mirror that.

Lastly an update: I'm actually working with the lender as we speak to do a deed in lieu, (foreclosure papers were already started I guess) something I've never heard of before NOT because I'm a novice but I AM new to having such a loss, this is a whole new ballgame that I am definitely learning from.  I would have never known this was an option had I not reached out to this community and I think it's saving me a foreclosure so I'm very grateful.

Elaine make sure you have an attorney represent you on the DIL.  they will make sure that you are not further responsible for any loss that the lender takes.. U want that clearly worked out with the lender before your sign that DIL.  Also check to see if the lender is going to issue you a 1099 C.. this will be ordinary income to you and tax will be due.. If your not familar with this talk to your CPA about it.. U can get out of the 1099c by declaring you had no assets at the time.. but if you do have assets and are not technically insolvent you might have to deal with the IRS on this issue.. Some lenders will issue these some wont.

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Bruce Woodruff:

Quote from @Account Closed:

Quote from @Elaine Goepfert:

@James Hamling I'd like to know what your opinion is on how to get a "rock-solid" comp? I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number. So, to recap, I trusted my realtor and the comps sent to me by him and the lender and the ARV appraisal given to me by them.

So outside of being a realtor myself, how would you have accomplished getting this "rock-solid" comp?  I'm here to learn.

@Elaine Goepfert: Your comment: "I was sent comps from my realtor supporting the ARV and surpassing it. Then to support that I received a appraisal supporting that number."

Those that say you have to do your own comps are not professionals. A realtor's job is to properly advise you. A professional will take responsibility for what they did. 

You did what you should do. You paid professionals to do their job. They failed you.

The solution is to not use real estate agents in the future. Seriously.

I have not used agents in 30 years because of this type of nonsense.

You paid someone to do their job and they weren't up to the task and won't take responsibility. Don't fall for the trap that they blame you.

True statement. I would rarely if ever trust comps that are provided by the realtor that you're using. They have a huge amount riding on simply getting you to agree with them, they don't have to be right and they don't spend any time trying to get the perfect comp numbers. 

And my experience with appraisers is that they are all conservative and lowball the number. Remember their job typically is to make sure that the property will cover the loan amount. And that's all they care about, not the real value of the property.

As James said, it's imperative that you learn how to do your own comps, the only person you should trust is yourself.

I just had a call with one of the companies we use to sell our REO's. Over the past six months the realtor list price to final sales price was 30% delta which we told them flat out was unacceptable. They had every excuse in the book but these properties were cleaned out and there was nothing "hidden" and the agents they used were not ideal. Shame on us as well for not doing our own, but my point is, you need to look at everything everyone does for you.

Chris my experience with my OREO is that there are some markets were values be it comps or appraisals are never met on the open market. The values ONLY work for refi's its customary in those markets for actual buyers to low ball.  And thats a function of inventory and strength of market.. In other markets most offers come in at price that realtor sets and you will have to give seller closing assists or maybe a tad off but not 30%..

[Henry Lazerow]

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

[Chris Seveney]

@Elaine Goepfert

Congrats on getting them to do a deed in lieu

As mentioned make sure the release is a full release of debt and does not allow them to come back after you for the deficiency.

[Ron S.]

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

[Jay Hinrichs]

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

[Ron S.]

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

[Elaine Goepfert]

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

[Jay Hinrichs]

Quote from @Elaine Goepfert:

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

pull your credit report and see if the loan is on it.. Also careful for debt releif talk to your CPA prior to signing.. Also many times the lender will include a note for the difference they want you to sign and pay over time.. check that as well.

[Ron S.]

Quote from @Elaine Goepfert:

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

I explain a DIL vs. Foreclosure like this, in either event, you are losing a limb (proverbially speaking of course), its just that with a DIL, its a below the knee amputation versus an above the knee amputation as it relates to the hit to your credit. If its not being reported to the bureaus then the only thing you have to concern yourself with is (As Jay points out) any potential deficiency you may be on the hook for. the actual physical processing of a DIL is very similar to a foreclosure in that there is title work, recording of documents, etc. There just isn't a lawsuit or publication of events.

I don't know what state you are in but some states require the bureaus to give consumers a free credit report once a year. Even if it wasn't free, you could go to Transunion.com, Experian.com, Equifax.com etc. and order your report to see what's being reported. Again, if its not being reported that's great for your credit but cover yourself for any balance that may be owed by ensuring its not in the documents for the DIL.

[Jay Hinrichs]

Quote from @Ron S.:

Quote from @Elaine Goepfert:

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

I explain a DIL vs. Foreclosure like this, in either event, you are losing a limb (proverbially speaking of course), its just that with a DIL, its a below the knee amputation versus an above the knee amputation as it relates to the hit to your credit. If its not being reported to the bureaus then the only thing you have to concern yourself with is (As Jay points out) any potential deficiency you may be on the hook for. the actual physical processing of a DIL is very similar to a foreclosure in that there is title work, recording of documents, etc. There just isn't a lawsuit or publication of events.

I don't know what state you are in but some states require the bureaus to give consumers a free credit report once a year. Even if it wasn't free, you could go to Transunion.com, Experian.com, Equifax.com etc. and order your report to see what's being reported. Again, if its not being reported that's great for your credit but cover yourself for any balance that may be owed by ensuring its not in the documents for the DIL.

we bought a 3.4 build mansion from an NBA star that had fell on hard times.. we had 2 weeks to payoff wells fargo 1.7 mil and this B Baller owed 3.5.  at first they wanted the deficiancy I went to bat for him and we got that waived.. and of course there was 7 judgements for 7 different moms for child support that had to come out of that 1.7 as well.. :) WE pulled it off and I was pretty proud of my negotiating skills against wells.. but it was running up on a quarter reporting end and I guess they just really needed that loan off the books.. WE did well with that house end of the day

[Elaine Goepfert]

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Elaine Goepfert:

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

I explain a DIL vs. Foreclosure like this, in either event, you are losing a limb (proverbially speaking of course), its just that with a DIL, its a below the knee amputation versus an above the knee amputation as it relates to the hit to your credit. If its not being reported to the bureaus then the only thing you have to concern yourself with is (As Jay points out) any potential deficiency you may be on the hook for. the actual physical processing of a DIL is very similar to a foreclosure in that there is title work, recording of documents, etc. There just isn't a lawsuit or publication of events.

I don't know what state you are in but some states require the bureaus to give consumers a free credit report once a year. Even if it wasn't free, you could go to Transunion.com, Experian.com, Equifax.com etc. and order your report to see what's being reported. Again, if its not being reported that's great for your credit but cover yourself for any balance that may be owed by ensuring its not in the documents for the DIL.

we bought a 3.4 build mansion from an NBA star that had fell on hard times.. we had 2 weeks to payoff wells fargo 1.7 mil and this B Baller owed 3.5.  at first they wanted the deficiancy I went to bat for him and we got that waived.. and of course there was 7 judgements for 7 different moms for child support that had to come out of that 1.7 as well.. :) WE pulled it off and I was pretty proud of my negotiating skills against wells.. but it was running up on a quarter reporting end and I guess they just really needed that loan off the books.. WE did well with that house end of the day

[Elaine Goepfert]

Quote from @Elaine Goepfert:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Elaine Goepfert:

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

I explain a DIL vs. Foreclosure like this, in either event, you are losing a limb (proverbially speaking of course), its just that with a DIL, its a below the knee amputation versus an above the knee amputation as it relates to the hit to your credit. If its not being reported to the bureaus then the only thing you have to concern yourself with is (As Jay points out) any potential deficiency you may be on the hook for. the actual physical processing of a DIL is very similar to a foreclosure in that there is title work, recording of documents, etc. There just isn't a lawsuit or publication of events.

I don't know what state you are in but some states require the bureaus to give consumers a free credit report once a year. Even if it wasn't free, you could go to Transunion.com, Experian.com, Equifax.com etc. and order your report to see what's being reported. Again, if its not being reported that's great for your credit but cover yourself for any balance that may be owed by ensuring its not in the documents for the DIL.

we bought a 3.4 build mansion from an NBA star that had fell on hard times.. we had 2 weeks to payoff wells fargo 1.7 mil and this B Baller owed 3.5.  at first they wanted the deficiancy I went to bat for him and we got that waived.. and of course there was 7 judgements for 7 different moms for child support that had to come out of that 1.7 as well.. :) WE pulled it off and I was pretty proud of my negotiating skills against wells.. but it was running up on a quarter reporting end and I guess they just really needed that loan off the books.. WE did well with that house end of the day

Jay, if you could pull off something like that for me I'd be eternally grateful. 😉

[Jay Hinrichs]

Quote from @Elaine Goepfert:

Quote from @Elaine Goepfert:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Elaine Goepfert:

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

I explain a DIL vs. Foreclosure like this, in either event, you are losing a limb (proverbially speaking of course), its just that with a DIL, its a below the knee amputation versus an above the knee amputation as it relates to the hit to your credit. If its not being reported to the bureaus then the only thing you have to concern yourself with is (As Jay points out) any potential deficiency you may be on the hook for. the actual physical processing of a DIL is very similar to a foreclosure in that there is title work, recording of documents, etc. There just isn't a lawsuit or publication of events.

I don't know what state you are in but some states require the bureaus to give consumers a free credit report once a year. Even if it wasn't free, you could go to Transunion.com, Experian.com, Equifax.com etc. and order your report to see what's being reported. Again, if its not being reported that's great for your credit but cover yourself for any balance that may be owed by ensuring its not in the documents for the DIL.

we bought a 3.4 build mansion from an NBA star that had fell on hard times.. we had 2 weeks to payoff wells fargo 1.7 mil and this B Baller owed 3.5.  at first they wanted the deficiancy I went to bat for him and we got that waived.. and of course there was 7 judgements for 7 different moms for child support that had to come out of that 1.7 as well.. :) WE pulled it off and I was pretty proud of my negotiating skills against wells.. but it was running up on a quarter reporting end and I guess they just really needed that loan off the books.. WE did well with that house end of the day

Jay, if you could pull off something like that for me I'd be eternally grateful. 😉

I am not buying anything in SWFL there are going to be thousands of situations like yours.. its deja bu all over again for me and when i was buying foreclosures there in 09 

[Elaine Goepfert]

Quote from @Jay Hinrichs:

Quote from @Elaine Goepfert:

Quote from @Elaine Goepfert:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Elaine Goepfert:

Quote from @Ron S.:

Quote from @Jay Hinrichs:

Quote from @Ron S.:

Quote from @Henry Lazerow:

Congrats on getting them to accept deed in liu will save your credit! Another option I thought of was pulling from your retirement funds if that can make up the LTV. You are in a solid market that should appreciate over the long term.

 A DIL does not save your credit. It shows as an amount settled for less than full amount due. While its not as bad as a foreclosure, it's bad.

Kiavi might not report to fico ?  

 True...if they don't report to the bureaus. No credit to damage...or to save.

 Is there a way to find out?  Are you saying if they don't report to credit bureaus you might as well go through foreclosure?  I thought the entire point of a deed in lieu is to save your credit?  Now I'm second guessing if this is the correct move.  They are mailing me the papers now, I'd love some guidance if anyone has any on what to do.

I explain a DIL vs. Foreclosure like this, in either event, you are losing a limb (proverbially speaking of course), its just that with a DIL, its a below the knee amputation versus an above the knee amputation as it relates to the hit to your credit. If its not being reported to the bureaus then the only thing you have to concern yourself with is (As Jay points out) any potential deficiency you may be on the hook for. the actual physical processing of a DIL is very similar to a foreclosure in that there is title work, recording of documents, etc. There just isn't a lawsuit or publication of events.

I don't know what state you are in but some states require the bureaus to give consumers a free credit report once a year. Even if it wasn't free, you could go to Transunion.com, Experian.com, Equifax.com etc. and order your report to see what's being reported. Again, if its not being reported that's great for your credit but cover yourself for any balance that may be owed by ensuring its not in the documents for the DIL.

we bought a 3.4 build mansion from an NBA star that had fell on hard times.. we had 2 weeks to payoff wells fargo 1.7 mil and this B Baller owed 3.5.  at first they wanted the deficiancy I went to bat for him and we got that waived.. and of course there was 7 judgements for 7 different moms for child support that had to come out of that 1.7 as well.. :) WE pulled it off and I was pretty proud of my negotiating skills against wells.. but it was running up on a quarter reporting end and I guess they just really needed that loan off the books.. WE did well with that house end of the day

Jay, if you could pull off something like that for me I'd be eternally grateful. 😉

I am not buying anything in SWFL there are going to be thousands of situations like yours.. its deja bu all over again for me and when i was buying foreclosures there in 09 

Haha, it was worth a shot.