Deed In Lieu Of Foreclosure

Deed in lieu of foreclosure is where a homeowner facing foreclosure conveys his/her house to the mortgage lender instead of going through the complete foreclosure process. In most cases, this action will stop foreclosure because the house satisfies the debt and no more money is owed.

Why would a mortgage lender accept a deed in lieu of foreclosure? In many of the cases, the house is worth about that same amount as is owed to the lender. But a mortgage lender may accept a deed in lieu of foreclosure even when the house is not worth as much as the amount owed to the lender. They will accept the deed in lieu because the mortgage lender may actually save money. If the lender has to foreclose, it will have to pay legal costs and wait for the foreclosure process. In the end, the lender gets the house. It may be cheaper to simply agree to take a deed in lieu of foreclosure before the foreclosure starts.

If you and your mortgage lender agree to a deed in lieu of foreclosure, be sure that you understand all of the details and have a lawyer look over all documents to make sure that what you are signing is what you agreed to.

This website, Stop Foreclosure - Five Options You Need To Know, is to help you understand the options (deed in lieu of foreclosure and others) available to you to stop or avoid foreclosure in your situation. You need to beware that not every option is available in every situation. An option that works in one situation may not work in different situation. See stop foreclosure options to help you understand the options available to you to stop or avoid foreclosure in your situation.