Deed in lieu of foreclosure -- know anything...

[wakemewhenitsover]

...about this?

How messy is it?
What are the steps?
Is it usually do-able?

Thanks!

[Texasgal]

1. here is some info:

Deed-in-lieu of Foreclosure
If all available options have failed, a DIL is the final alternative. Although you transfer title of your home to the investor, there are advantages over foreclosure.

First, the investor and insurer waive any right to a deficiency judgement against you if they suffer a loss reselling the property. Second, you won't have a completed foreclosure on your record, increasing your opportunity to purchase a home in the future.

Generally the investor and insurer will consider a DIL if the default was beyond your control and you have been cooperative in seeking alternatives. You must first have tried to sell the property for 90 days at fair market value.

[wakemewhenitsover]

3. Thanks. btw, where's that from?

[Raven]

2. Depends on where you are, state law differs but

a deed in lieu of foreclosure is just that. A deed of the property given by you to the mortgagee (the lender) instead of going through the whole forclosure process which can get expensive and time consuming for the lender.

The poster above is correct that with a deed in lieu you avoid a default judgment but I have never heard of having to have tried to sell the property before you can do a deed in lieu. That may be a requirement specific to that poster's area.

A deed in lieu is not as "messy" as a foreclosure but the lender has to agree to it. It is definately doable if both sides agree and your first step should be to talk to a real estate lawyer in your area. DON'T TRY TO DO THIS ON YOUR OWN!

[wakemewhenitsover]

4. Thank you.