Deed-In-Lieu of Foreclosure - A Deed-in-lieu of foreclosure is a last ditch option, whereby you may be permitted to voluntarily elect to return or give back your property to the servicer or lender. If you cannot refinance out of the foreclosure, a deed-in-lieu may be the only option you have to save your credit, even though you will not be able to sav your home. This is because with a deed-in-lieu you can avoid the actual foreclosure itself, thereby reducing the impact on your credit score and credit report.Because a this option is usually the last one, its best to speak with a professional to determine if a chapter 13 bankrtupcy will be worth it. It is usually best to speak to a foreclosure specialist and a bankruptcy attorney to discuss all your options.
Usually this is used when the there is no other option. Many times the lender will not accept a deed in lieu of foreclosure, but it is also on a case by case basis.
Before considering a deed-in-lieu, detemine how much equity you have in the property, because if you do offer a deed-in-lieu of foreclosure you will generally be abandoning not only ownership of the property but any equity you may have built up through appreciation (the increase in value over the years) and principal pyaments over the years. If you believe you have 30% or more equity in the property, contact us at 888-275-6788 to review options which may allow you to save your home from foreclosure without resorting to the deed-in-lieu
Deed In Lieu Of Foreclosure - A legal method to avoid foreclosure whereby a deed is given to the lender to fulfill the loan obligation to repay the debt. This procedure does not allow the borrower to continue to occupy the property. However it does help to satisfy the obligation of repaying the balance due on the defaulted loan and thereby avoiding foreclosure.
Before considering deed in lieu negotiations with your lender, evalutate your refinancing options with a lender specializing in foreclosure refinances.
"Deed in lieu of foreclosure" gives title to the lender, when a person is in default and wants to avoid foreclosure. Offering to provide a deed-in-lieu, does not guaratee the lender will accept it. Either way, if the lender accepts the deed-in-lieu or not, the avoidance and non-repayment of debt will most likely show on a credit history. What a deed-in-lieu may prevent is having the documents to a foreclosure being recorded and become a matter of public record.
Deed in lieu of foreclosure can also be called a voluntary deed or voluntary conveyance.
A Deed in lieu of foreclosure is an excellent way for a bank and a borrower to come to an agreement - specifically when the borrower is obviously in a tough spot, and it can be easily verified, and is obvious that better times are ahead. The last thing a bank wants to do is foreclose on a borrower, if they can avoid the process - as it is very costly for everyone involved, including the bank.
Deed in lieu of foreclosure - "I have fallen behind in my mortgage payments. What does it mean to give my deed in lieu of foreclosure? Can I still keep my house?"
A Deed in lieu of foreclosure is when a borrower (you) transfers or conveys or grants all ownership interest in their property to their mortgage lender "in lieu of" (i.e. "instead of") foreclosure proceedings.
The main advantage to the borrower is that it allows a borrower to quickly be released from most of the personal financial obligations related to owning the propery, including the mortgage and any arrearage therein.
Additionally, it saves the borrower the expense, bad public records and credit imnplications of having a foreclosure proceeding and judgment. This is to be considered an option of last resort. If you have substantial equity in your property, 30 to 40% or more, you are much better off refinancing out of foreclosure, even if other lenders have told you they cannot help you. Contact us at 888-275-6788 for more information.
