Deed in Lieu of Foreclosure
Deed-in-Lieu of Foreclosure is, in effect, giving your property to your lender in exchange for cancellation of your mortgage. It is sometimes also referred to as Cash for Keys.
In Deed-in-Lieu of Foreclosure, we can negotiate with your lender to voluntarily give your property back to your Mortgage Company and your debt or deficiency is often forgiven. This won't save you home, but it will help you with your chances of getting another mortgage loan in the future and it will help you avoid the lengthy legal process of foreclosure. Although it is a negative strike on your credit rating, it is less harmful than a mortgage foreclosure.
Lenders will consider accepting a Deed-in-Lieu transaction when other options are not possible. Generally, lenders expect the following conditions to be met in order to consider offering a homeowner a Deed-in-Lieu solution:

  • You have experienced a long term financial hardship that has not be resolved.
  • Your house has been on the market (at fair market value) for at least 90 days.
  • There are no additional claims or liens (other than the first mortgage) against the property.
  • The house is broom clean.