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A Deed In Lieu Didn't Work What Else Can I Do?

What can I do if a Deed In Lieu backfired on me and I don't want to file bankruptcy?

My house is in foreclosure while I am trying to do a deed in lieu. My problem is with the second mortgage. we had an agreement that if 1st mortgage agreed to deed in lieu, they would release the lien on the deed and I would pay back a $12,000 loan over 5 years to them and all is settled. However, that offer expired today and because my first mortgage took forever to make a decision, that agreement has now expired and I found out along the process that loan got charged off. Now I do not know what my best option is. I only made enough to cover the $12,000 loan repayment, I can;t come up with 50% of the loan to pay immediately because with this on my record I won;t get a loan approved, bankruptcy is not an option for me (already looked into it) and I wouldn;t be able to afford a loan for the full amount of $37000 each month (otherwise I would have been able to pay the regular loan all these months). I don;t know what to do. If I choose to ignore the charge off and collections, what is the reality of them coming after me and garnishing my wages? I am a single mom, my ex put me in this siutation and is only on the deed and not the mortgages so I can't hold him accountable to help me, and I just don;t know what to do. I am so upset about this, I tried to do the right thing with a deed in lieu and now that is even backfiring. Any help would be great, thanks so much.

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Bill's Answer
(7 Votes) | Find Learn Save

It is difficult for me to say whether the creditors will be able to garnish your wages. There are some states that do not allow for wage garnishment, while others do. I recommend you visit our page State Consumer Protection Laws and Exemptions to see what the laws in your state allow.

Your situation is very difficult one, which has no simple solution. One option you may want to consider looking into is a short sale of the property. Please read an article I wrote about A Deed In Lieu Of Foreclosure vs. A Short Sale. You may find that a short sale may help resolve your situation.

I hope this information helps you Find, Save, and Learn.



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