Deed-in-lieu of Foreclosure
A deed-in-lieu settlement allows you to deed your interest in the property back to the bank as opposed to agreeing to a Final Judgment of Foreclosure. So, with a deed-in-lieu, there is no foreclosure judgment on your record. Once the deed-in-lieu is completed, the foreclosure is dismissed, and the bank will sell the property. Often deed-in-lieu settlements come with a monetary settlement paid to the homeowner as well as an extended period of time to remain in the property. An additional 120 days in the property is pretty standard with a deed-in-lieu settlement.