What are the ramifications or actions against me if I do not pay a prom note with the approval of deed in lieu

Asked about 2 months ago - Port Richey, FL

$70,800 over 120 months and payment at $590 a month....if I default on this, what can Fannie Mae do to me

Attorney answers (2)

  1. Lisa Torelli McCue

    Pro

    Contributor Level 12

    1

    Lawyer agrees

    Answered . I think the reason no one has answered this for the last several days is because we don't understand the question. Are you asking what will happen if your lender agrees to a deed in lieu of foreclosure? If so, here's my answer: A deed in lieu does have negative credit implications; there may also be negative tax implications if Fannie Mae forgives the remaining debt. If Fannie Mae doesn't forgive the deficiency, you will owe the difference between the market value of your property on the date of the deed in lieu, and what you owed on the mortgage promissory note as of that date.

  2. Daniel Joseph Shamy

    Pro

    Contributor Level 11

    Answered . I agree with my colleague. Although a Deed in Lieu may sometimes be negotiated to avoid a foreclosure action, if you do not also acquire a waiver for the deficiency arising from the sale, then you would be responsible for the deficiency.

    We have a foreclosure defense division of our law firm that may be able to assist you with negotiating the terms of the foreclosure if your financial institution is willing to resolve the matter by Deed in Lieu. I have provided a link to our website for more information and our phone number to contact the office for a free consultation.

    Please note that the response above is solely based on the information provided in the question, and limited to in... more

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