If you recently went into default, your mortgage holder may agree to a deed in lieu of foreclosure. In exchange for the deed, the lender would release you from the mortgage. With a hardship, you may even be free and clear within 90 days.
Orange County Foreclosure Attorney
Oaktree Law attorneys can negotiate an agreement that will minimize damage to your credit. A deed in lieu of foreclosure obligates you to give up claim to the property, but puts you back on the road to recovery.
Contact us or call 800-535-1627 if you have questions about the requirements for a deed in lieu of foreclosure.
Benefits of a DIL
The crux of any deed in lieu of foreclosure is the lender’s willingness to sign. They must be willing to forgive the deficiency balance, or the unpaid balance of a mortgage after the sale. If the mortgage holder agrees, your benefits should include:
- Freedom from a property that has become a burden
- Forgiveness of any loan balance
- Up to $2000 towards outstanding liens
- A credit history without foreclosure
A deed in lieu of foreclosure may not be appropriate for all properties. To be approved, your home will need to pass a close inspection. Excessive liens on the property will also complicate the process. And with the forgiveness of any deficiency balance, tax implications are likely.
If a deed in lieu fits your case, we can create an accurate financial package, help you craft a hardship letter and negotiate with your mortgage holder for terms that will satisfy both parties.