Home Loans and Support

Can you get a DIL as a landlord?

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by brokepepper, Aug 8, 2010.

  1. brokepepper

    brokepepper LoanSafe Member

    Our house was our primary residence 2006-2008 in Iowa. Moved to another state to obtain gainful employment.
    We purchased for $123,000
    Currently owe $119,000, would have to sell for $128,000 just to pay the realtor.
    Houses in the neighborhood selling for $100,000-$110,000
    First/Chase
    Second/Chase
    80/20 loan to purchase

    Rented for the last 18 months until renters just left.
    Honestly can't afford the payments, previously we spent all our 401K to keep the payments going while we tried to sell it.

    Afraid to rent out again after the damage the last tenants did, feel it would be better for everyone to cut our losses now before incurring more devaluing of the property by tenants.

    But I'm reading on the internet that if I'm not currently in the home and am current on my payments, I have no hope of receiving a DIL.

    The house is on the market starting this weekend, I have enough in savings to make this months payment and next and then we will not be able to make anymore.

    Is it true I can't obtain a DIL and if I did, would I have to pay capital gains on the sale?

    BP
  2. helpinNE

    helpinNE LoanSafe Member

    DIL of very hard to obtain. Most lenders will require the house be on the market for at least 90 days. You may have a better chance at a short sale. These too can be hard to obtain, however, since there is not that great of a difference between what you owe and what the house could sell for this may be your best option.
    Find a realtor in your area with experience in short sales. You might want to consider skipping your mortgage payment this next month, however, keep in mind that this will hurt your credit sore.
    Best of luck.

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