Deed-in-lieu of Foreclosure
Deed-in-Lieu
A deed-in-lieu can be a great option if you want to walk away from your property and reduce or eliminate your liabilities. A deed-in-lieu is only an option if you do not have any junior liens such as second mortgages, lines of credit, etc. A deed-in-lieu is where you sign your deed back over to the bank in exchange for a cash payment and a release from the debt, so you do not owe the bank any more money on the mortgage. You have to submit a deed-in-lieu application and get approved for it and our firm can assist you with your application for a deed-in-lieu.
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.
