Is a Deed-In-Lieu of Foreclosure a realistic solution

A deed in lieu of foreclosure is a process in which you voluntarily turn over your home to the lender as an alternative to foreclosure.  Lender's are usually not interested in a deed in lieu of foreclosure when there is a junior mortgage or lien on the property.  The reason for this is that a foreclosure is necesary for the lender to obtain clear title to your home.

A deed in lieu is usually a bad idea.  In this scenario you voluntarily terinate your ownership rights and usually get nothing in return.  However, if the situation presents itself where the lender agrees to give you something in exchange for the deed then you may want to consider this option.  Sometimes the lender will be willing to give you a small cash payout to assist in moving cost, correct or elimiate relaed negative credit entries or give you additional time in the home before the eviction. It is always smart to get any agreement in writing before you take any action.

If you are considering a deed in lieu of foreclosure, or simply want to see if this option is a realistic solution please contact our office.