Deed in Lieu of Foreclosure
If you're concerned about losing your home to foreclosure you may be looking at alternatives to a foreclosure. A deed in lieu of foreclosure is one option you may want to consider.
First, it's important to understand that a deed in lieu of foreclosure will not help you keep your home. If you want to avoid foreclosure and keep your house you're going to have to look into another option. What a deed in lieu of foreclosure does is it prevents you from having a foreclosure on your credit record and going through the foreclosure process.
When you seek a deed in lieu of foreclosure you need your mortgage lender to agree to a transfer of the deed to the property from your name to theirs. In this situation the home is used to satisfy whatever is left on the mortgage and any default charges.
If you are in a situation where your home is creating a great financial instability in your life then you may want to alleviate yourself of the burden by taking the loan out of the equation. If you can get your lender to accept a deed in lieu of foreclosure then you walk away without a home but you also walk away from your home debt scot free without any further mortgage obligations and without owing those late fees you accumulated. On top of this, a deed in lieu of foreclosure prevents the foreclosure process from proceeding which may be beneficial to you for personal, professional and credit reasons.