A deed-in-lieu of foreclosure can be a way to get out of your mortgage without going through the formal foreclosure process. It allows a homeowner who’s facing financial difficulty and can’t keep up with their mortgage payments to sign over ownership of their home to the lender. In exchange, the lender releases the borrower from the loan obligation.
Avoid Repossession & Foreclosure
This route can offer homeowners a way to avoid the financial and emotional stress of having their homes repossessed. It also helps lenders by allowing them to quickly and easily take possession of a property without going through the lengthy foreclosure process.
The deed-in-lieu of foreclosure process is not for everyone, and it should be carefully evaluated before making a decision. It typically has a negative impact on credit scores, and homeowners can still be held liable for any deficiency balances that remain after their primary mortgage loan is forgiven. That said, these consequences could be preferable to foreclosure and if bankruptcy isn’t an option.
Contact an Attorney to Learn More
Overall, the deed-in-lieu of foreclosure route can provide benefits to both lenders and borrowers by allowing quick repossession of a property without having to go through the lengthy foreclosure process.
That said, it's important to understand the risks associated with this option before committing to it. Working with an experienced lawyer or financial advisor can help you decide if this option is right for your situation.
Contact Buchalter & Pelphrey Attorneys At Law for help when you’re considering a deed-in-lieu of foreclosure.