Giving A House Back To Avoid Foreclosure

Do you want to avoid foreclosure even if it means losing your house? If so, you want to know about giving a house back to avoid foreclosure.

In some cases, it is possible to give a house back to a mortgage lender and avoid home foreclosure. The process is commonly called "deed-in-lieu" or "deed in lieu of foreclosure". It sounds simple, and it is simple if you and your house qualify, and your mortgage lender agrees.

The first step is to determine if you and your house qualify. Mortgages, judgments, and tax liens are liens against real property such as a house and land. The priority of these liens is generally determined by the date that each lien was filled. For a new owner to have clear title to a house and land, all of the existing liens must be paid and satisfied. So, for your house to qualify to be given to your mortgage lender, there must not be any liens other than the mortgage or deed of trust given to your current mortgage lender.

Further, you must not be involved in any litigation or legal actions that could affect the ownership of your house and land. If you give your lender a deed in lieu of foreclosure (give your house to your lender), your lender wants to make sure that it will own your house and land without any problems.

The next step is to find out if your mortgage lender will accept your house in exchange for canceling and satisfying your mortgage or deed of trust. If your house is worth more than the amount owed on your home loan, your lender will be more likely to agree to accept your house. If you owe more than your house is worth, your lender will need to take a close look at the proposal to give your house to your lender. Your lender may still be willing to accept your house so that it can avoid the costs of foreclosure.

Whether your house is worth more or less, a mortgage lender does not have an obligation and is not required to accept a house in lieu of foreclosure. Your lender may simply have its own policy that it will not accept a house given to avoid foreclosure under any conditions.

The final step in giving a house back to avoid foreclosure, is to have a lawyer review any documents given to you by your mortgage lender, to prepare the deed and any other necessary documents, and to "close" or complete the transaction. Be sure that you understand everything that you and your lender have agreed to and that the deed in lieu of foreclosure is a final and complete satisfaction of your loan from your lender.

Remember that giving a house back to avoid foreclosure is only one way of avoiding foreclosure. You may have other options.

This is general information only and not legal advice. If you need specific information or have any questions of any nature whatsoever, talk with a lawyer licensed in your state.

Stop! Don't blindly chase any option to stop foreclosure. See stop foreclosure options to learn what options you have in your situation. Remember, what works in one person's situation, may or may not work in your situation to stop, avoid, and prevent foreclosure.

For more general information, see Stop Foreclosure - Five Options You Need To Know. For more detailed information see avoid foreclosure.

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