If you have explored all the options available, but still cannot afford your home, you may qualify for a Deed-In-Lieu which would allow you to avoid foreclosure and resolve your past due mortgage delinquencies.
What is a Deed-in-Lieu?
A Deed-in-Lieu of Foreclosure is when you transfer your property ownership and title to your mortgage holder in exchange for releasing you from your mortgage obligations.
A Deed-In-Lieu is a foreclosure alternative and is a consideration when:
- You cannot refinance or modify your mortgage
- You are dealing with a long-term hardship
- You are currently behind on your monthly mortgage payments
- You owe more on your home than it’s current market value
- You either don’t want to or are unable to sell your home
- You cannot afford your home and are ready to leave
What is the process for a Deed-in-Lieu?
With a Deed-In-Lieu, we work with your mortgage company to determine the value of your property and how much you still owe on it as well as clarifying your current hardship. Once approved, you will be required to vacate the property and sign standard closing documents as well as attend the closing.
Additionally, your home should be left in good condition, free of trash, debris or damage, with all belongings taken out of the property. Some people may even be able to receive assistance with your relocation to make the process go smoother.
What are the benefits of a Deed-in-Lieu?
- Dismiss or reduce your remaining mortgage debt
- Avoid Foreclosure
- Possibility of relocation assistance
- Repair your credit faster than a Foreclosure
- Purchase another home in 2 years as opposed to 7 years with a Foreclosure