If you have missed several mortgage payments and you need to stop Wyoming home foreclosure, a Deed-in-Lieu of foreclosure is one of your options.
If you have missed several mortgage payments, the bank can foreclose on your home and sell it to recover the balance of the loan. If you need to stop Wyoming home foreclosure, a Deed-in-Lieu (DIL) of foreclosure is one of your options. A DIL stops the foreclosure process, because you basically give the property back to the lender.
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Allowing the bank to foreclose on your property can create several problems. One is that the bank is may attempt to collect the balance of the loan after you move out of your house. These collection attempts will usually continue until the bank is able to sell the home at an auction or directly to a buyer. Having a foreclosure on your credit report also makes it more difficult for you to qualify for credit cards, personal loans, lines of credit and mortgages.
With a Wyoming foreclosure Deed-in-Lieu, the lender agrees not to foreclose on the house. Lenders often waive past due payments and other fees. Doing a Deed-in-Lieu of sale in Wyoming is an attractive option if you are unable to make your missed mortgage payments but want to avoid foreclosure. However, this solution does have some drawbacks.
Your lender will send you a 1099 form for the amount it writes off, which means that money will be considered taxable income. If the amount $10,000 or more, you may owe a significant amount of tax. It is best to consult an attorney before going through the Wyoming foreclosure deed in lieu process, as he or she can explain the impact of your actions on your taxes.
You can get help with a Deed-in-Lieu of foreclosure through the federal Home Affordable Foreclosure Alternatives (HAFA) Program. A federal housing counselor help you decide if this is your best option and work with your lender. Addionally, you may get up to $3,000 in relocation money through HAFA if you qualify. The other HAFA alternative is a short sale, which is a good option if you owe more on your home than it is worth. If a housing counselor recommends a short sale over a DIL, you can find a real estate agent who specializes in short sale at Reply!