Deed in lieu of foreclosure
A deed in lieu of foreclosure happens when you voluntarily give the deed to your property to the mortgage company. For the most part, a deed-in-lieu is considered only after all other alternatives to foreclosure have been explored.As a last resort, you "give back" your property and the debt is forgiven. This does not save your house, but it is less damaging to your credit rating. This option might sound like the easiest way out, but it has limitations:
You usually have to try to sell the home for its fair market value for at least 90 days before the lender will consider this option.
This option may not be available if you have other liens, such as other creditor judgments, second mortgages, and IRS or state tax liens.
A deed-in-lieu of foreclosure is not accepted from mortgagors who can financially make their mortgage payments.
Frequently Asked Questions
Deed in Lieu of foreclosure ?
Pre-Foreclosure/Short Sale?
Repayment Plan?
Loss Mitigation?
Forbearance?
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