Can someone tell me about deed-in-lleu of foreclosure?
Question:
Answer:
A deed-in-lieu is the same as a foreclosure with one very important benefit: You can usually be exempt from a deficiencty judgement.
Just call you lender's risk litagation department. They will work out a deal with you of when to vacate. You agree in return to leave the house in pristine condition...as if you were going to sell it, thoroughly cleaned, etc. Make sure you get all terms in writing so there are no suprises.
This is a very good deal, especially if you don't have alot of equity in the home.
I believe a deed in lieu of foreclosure is basically the same as handing the house keys back to the bank and walking away. You forfeit any and all ownership/equity in the property and return it to the lender, who will then auction it to pay your loan. Having a foreclosure on your credit is a huge 'black eye'.
here is a link that can explain all you want to know about your state's forclosure procedures and the timelines for it.
http://www.foreclosures.com/pages/state_...
simply click on your state...
good Luck ---hope this helps :)
As some stated it is basically handing the house back to the lender. Any equity you may have in the home would be theirs. And typically they would not pursue recourse. If you are in difficulties now, call 888-995-Help, it is a HUD approved Counseling service. Try to work this out before giving up and letting them have it. You may have to retain an attorney to advise you, it would be well worth the money.
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