A deed in lieu of foreclosure is a deed executed by a borrower and given to the lender in order to avoid having the lender foreclose. Once accepted, the borrower is immediately released from most or all of the personal indebtedness associated with the defaulted loan.
The debtor avoids having a notice of default filed against him or her and saves the time associated with a foreclosure, whether it is by trustee sale or judicial decree. The debtor may also escape liability for any deficiency resulting from a judicial foreclosure.
When the parties agree to execute a deed in lieu of foreclosure, the transfer may be made by grant or quitclaim deed and may be done at any stage of the proceedings prior to the actual foreclosure sale.
If you have been unable to make your monthly mortgage payments and have also been unsuccessful trying to sell your home at the market value, this form of foreclosure may be what is necessary to get you back on track.
This procedure allows you to transfer your property voluntarily to your lender or Mortgage Company and often allows your debt or deficiency to be forgiven. This will not save your home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure.
Although it is a negative strike on your credit rating, it is less harmful than a foreclosure.
Finding help with a deed in lieu of foreclosure can be hard, because not many firms are qualified to provide these services, even though they might tell you they are. Make sure you are working with a qualified attorney to help you with a deed in lieu of foreclosure. As attorneys, we can represent you in the deed-in-lieu of foreclosure process.
To get started with a free and confidential consultation, please contact our office toll free or via email to speak with an attorney.
If you have already spoken with one of our attorneys, or would like to start your matter, then go to our Client Services & Forms page to sign and return the appropriate retainer agreement to our office. As soon as we receive your documents, we will contact you for additional information or documents as may be needed.
