Deed in lieu of

A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. It also avoids the long and protracted process of going through foreclosure which often increases the amount of the deficiency due to attorney’s fees incurred by the lender to prosecute the foreclosure

For more information about negotiating a Deed in lieu of, please contact me for a free consultation.

Turning the keys in lieu of foreclosure is difficult to obtain, however in some instances if it’s possible at all. Your mortgage lender releases you from the mortgage obligation and you return the property to the bank.

However, having the bank pay you to vacate the premises and turn over the keys is the better scenario available. Having a Foreclosure Defense Attorney negotiate a settlement with mortgagee, where the borrower is paid money to move, as well as provided a limited period of time to vacate the house, can be a win-wins situation for all. Generally, however, this works best with “hard money lender” and commercial loans. For more information about Deed in Lieu, please contact me for a free consultation.