Will a bank try to retrieve the remaining balance on a foreclosure and what is a deed in lieu of for closure?

Question:

we may have to give up our home to foreclosure and I was worried that they will come after the balance since we cannot get what we owe. we are not late on payment but cannot hold on to it much longer. I'm not sure what deed in lieu of foreclosure is . It has been on the market for a while now.

Answer:
First if you're having difficulties, HUD/FHA has approved this counseling service to help you, call 888-995-help. Second, have to spoken with the bank about adjusting your loan to help you keep the house? Do that. If you let the bank foreclose, you lose all the financial benefits as well as the home. If you give them the deed "in lieu of" foreclosure, the lender forgives the loan. That's not likely. You could ask them about a "short sale". It's where you list and the sell the home to cover the mortgage balances and expenses of selling. Any gained you get, anything under the expenses becomes income to you and the IRS is notified.

You still have some really good options, please don't delay if you're experiencing difficulties. Good Luck!

If you are not currently behind by all means talk with your lender and ask them specifically what options you have to possibly defer one or more payments, giving you a month or so to payoff other debts and catch up.

Most lenders have some type of "foreclosure avoidance" plan in place these days - just ask them.

Also, do contact one of HUD's approved counselors for more help and info. http://www.hud.gov

If you give them the "deed in lieu" then you should not have a balance it's why this is done, but you loose any equity and rights in the transaction. But preserves your credit more than having a foreclosure on your report.

Will a bank try to retrieve the remaining balance on a foreclosure and what is a deed in lieu of for closure?

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