What is Deed in Lieu of Foreclosure?

By dhinternational  /  July 6, 2011 / Comments Off on What is Deed in Lieu of Foreclosure?
Deed in Lieu of Foreclosure

Deed in Lieu of Foreclosure

If you’re a property owner who wants to stop a foreclosure on your property, there are actually several ways to do that. One of which is called the short sale wherein you sell the home. Another way is to battle the banker in the court wherein there is a big chance you will win. Also, you can do a deed in lieu of foreclosure. So what exactly is it?

In deed of lieu of foreclosure, these deeds back the property to the lender to avoid the foreclosure process. When you give back your property, you make an effort to stop the pressure of foreclosure and damages to your credit. Take note that this method is best for those who are okay to not keep their homes.

In this method, there will be documentation involved and it would be significant that you do it right. Usually, the documentation includes a binding agreement that goes with deed in lieu of foreclosure or deed in lieu to the banker or even deed in lieu to the mortgage corporation. Your documents should show that the Promissory Note of the banker’s consideration for providing residence is satisfied and is “Paid in Full”. If these words are not part of your documentation, the lender may still bother you and ask you for your payments in reference to the Promissory Note. However, if this has been included in your paperwork along with the deed in lieu, you will have no more responsibilities to the loan provider.

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