Deed In Lieu Of Foreclosure

What Is A Deed In Lieu Of Foreclosure?

A deed in lieu of foreclosure means exactly what the name suggests - the homeowner gives the home back to the mortgage company in exchange for the mortgage company not foreclosing. This sounds like a great option for homeowners trapped in the homes they cannot afford - just give move out, give the home back to the mortgage company, get it over with and move on with life!

Deeds In Lieu Of Foreclosure - Florida: Difficult To Obtain

Unfortunately, the deed in lieu of foreclosure (fl) option is much more difficult to obtain than it sounds. Deeds in lieu of foreclosure are actually somewhat rare and difficult to get a mortgage company to agree to. In fact, from the mortgage company's perspective, a deed in lieu of foreclosure really isn't that simple at all! For instance, if there is a second mortgage or a lien on the home, the mortgage company will have to pay off the other mortgages and liens before it has clear title to the property (and clear title is necessary to sell the home, which is the mortgage company's ultimate goal). Also, there is a question of who is actually on the property title itself - and do all the people on the deed want to give the deed in lieu of foreclosure? Do they understand what they are doing? Could someone later claim they didn't know they were giving up the home and try to undo the transfer?

Conditions Which Make A Deed In Lieu Of Foreclosure More Likely

Deed in lieu of foreclosure is only likely to happen when all of the following conditions are met:

• The homeowner cannot afford to make payments and foreclosure is imminent and unavoidable
• The homeowner has tried but is unable to sell the home.
• There are no other liens, second mortgages, or attachments to the home.
• The home needs to be left in good and clean condition.

If these conditions are met, the mortgage company may consider accepting the deed in lieu of foreclosure. But - the mortgage company may still try to collect the deficiency, or require the homeowner to sign a new promissory note, or even file a collection lawsuit. There may also be tax implications with the IRS.

Consult For Free With Experienced Deed In Lieu Of Foreclosure Attorney

When considering a short sale, it is important to understand the facts and speak to an experienced deed in lieu of foreclosure lawyer, like the team at the Byrne Law Group. Call for a free consultation today at 813-413-6565 and learn about your options.