How can I do a Deed-in-lieu of Foreclosure?
Deed-in-lieu of Foreclosure- Occurs when the lender accepts ownership of the property in place of the money owed on the mortgage.
Basically, you simply sign over the property to the bank to avoid foreclosure.
Sounds easy, right? Not so fast!
Most lenders will require that the homeowner first attempt a short sale before they will even consider a Deed-in-lieu of foreclosure. Additionally, having multiple lenders can complicate things even further. We have yet to see a Deed-in-lieu accepted on a property with multiple lenders. Therefore, we don’t see Deed-in-lieu of Foreclosure as a viable first option for distressed homeowners.
However, things may be changing, we recently received a call from a client who has been asked, by their lender, if they are interested in completing a Deed-in-lieu of Foreclosure. We will have to see if this is an isolated occurrence or the new trend.
Call 516-858-2620 to speak with a foreclosure attorney. The Law Firm of VAUGHN & WEBER, PLLC, is here to assist you!