Deed in lieu of foreclosure is a process in which a homeowner voluntarily signs over their property to the lender to avoid foreclosure. It is typically done in situations where the loan amount far exceeds the value of the property, and the homeowner wants to just “walk away.”
A deed in lieu of foreclosure can offer several advantages to both the homeowner and the lender. The objective, for the homeowner, is to have the lender waive any “deficiency” from the sale of the property. A deficiency is the amount left unpaid on the loan after the property is sold for less than what is owed against it. In many situations, this is a distinct possibility, in others it is more challenging.
Most lenders have very strict requirements and qualifications for a deed in lieu of foreclosure, and it is not something homeowners can typically accomplish by themselves. The deed in lieu of foreclosure process can be long and burdensome and most homeowners attempting to negotiate on their own behalf simply don’t have the time and industry expertise to follow through.
The deed in lieu of foreclosure process begins like most other negotiations with the lender, the borrower must complete and submit a financial package with documentation relating to income, expenses, assets and debts. The financial package submitted must tell the borrowers story on paper in a compelling manner including the circumstances which led to the inability to afford payments. Next the lender usually schedules a comprehensive deed in lieu of foreclosure inspection of the property and eventually determines if they want to accept the deed to the property.
The attorneys at The Heckele Law Firm, PLLC have years of experience in all aspects of foreclosure law and give you the best chance of avoiding foreclosure. Deed in lieu of foreclosure may be an option for you, but it must be submitted and negotiated properly. We have the expertise to work with your lender(s) and resolve your foreclosure issues efficiently; call today for a free case evaluation (520) 433-9031 or email [email protected]