Stop Mortgage Foreclosure Using Deed In Lieu of Foreclosure
Sometimes the best way to stop mortgage foreclosure is to ask your lender if they will agree to a deed in lieu of foreclosure
. How do you know if it is right for your situation? How does it work?
Let us start with how it works. In essence, your mortgage company agrees to not foreclose on your house in exchange for you freely giving them your house. There will be formal paperwork that needs to be signed where you authorize your lender to take your house and which makes them the legal owner of the house. As is true of any documents that you sign, be sure that you understand everything that you are signing. Also be sure that the timeframe involved gives you enough time to find another place to live and to pack up your belongings.
Is this the best solution for you to stop mortgage foreclosure? If you know that you are going to lose your house anyway, this is a good option for you. It will be better for your credit and it also saves you from what could be a lengthy foreclosure process. Keep in mind that until the house changes ownership, you are still legally responsible for it. That means that you are responsible for HOA fees, fines and any personal liability for the property.
If your house is worth less than what you owe the mortgage company, they may or may not agree to a deed in lieu of foreclosure. Foreclosure is an expensive and lengthy process for the mortgage company so even if your house is worth less, they may agree just to avoid the foreclosure costs.
Stop Mortgage Foreclosure Using Deed In Lieu of Foreclosure