Understand how a deed-in-lieu of foreclosure works, its potential benefits and drawbacks, and if can be a viable option for you.
Homeowners can avoid a foreclosure with a short sale or deed in lieu. Learn the difference between these two options.
Deed in lieu of foreclosure is an action by a mortgagor by which they deed the collateral property back to the lender to avoid foreclosure.
Owners in dire financial situations or risk foreclosure may opt for short sales. In a short sale, the lender of the original mortgage gets all of the proceeds of the sale. The lender will then either forgive the difference on the mortgage or require the original borrower to pay what’s left via a deficiency judgment. For lenders, a short home sale is preferable to a foreclosure sale. It offers the homeowner and the lender a way to recapture c ...
A deed in lieu of foreclosure is one solution a homeowner could turn to in times of extended financial hardship to keep their home.
An individual can purchase a home fairly soon after a short sale, while a foreclosure significantly affects a homeowner’s credit score. Less impact on your credit: A short sale is usually less damaging to your credit than a foreclosure, making it easier to buy another home after the process is complete. A short sale requires more work: As a seller, there’s a lot to do in a short sale, including drafting a hardship letter, finding a real estate agent, listing your home, and working with your ...
If you’re staring down the possibility of foreclosure, you might have options. Learn what a deed in lieu of foreclosure is and whether it’s right for you.
A deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that...
Learn how a deed in lieu of foreclosure allows you to forfeit your home without legal proceedings, the pros and cons and how to avoid foreclosure.
If you’re behind on your mortgage payments, a deed in lieu might help you avoid foreclosure. Find out if a deed in lieu of foreclosure is right for you.