25
Apr
11

FAQ regarding deed in lieu of foreclsoure

Q. What is the definition of a deed in lieu of foreclosure?

A. The homeowner exchanges his or her ownership interest in the house, represented by a deed, back to the mortgage holder in order to avoid mortgage foreclosure and in some cases forgiveness of a mortgage deficiency.

In basic terms, you give the keys to your home back to the bank and you walk away;  the bank agrees not to foreclose or ever ask you for any more money.

Q. Under what circumstances would a homeowner do a deed in lieu of foreclosure?

In general, two sets of homeowners pursue a deed in lieu of foreclosure as a way out for mortgage trouble.

  • Homeowners who do not want to keep their home under any circumstances
  • Homeowners who, despite a wish to keep their home, reached the assumption that no foreclosure prevention alternatives will allow them to keep their house.

Q. Why would someone want to forfeit their home as a first choice?

  •       Homeowner does not like the house itself.
  •       The location is no longer right.
  •       The house is no longer the right size or right type.
  •       Neighborhood or zoning degradation.
  •       Repair, renovation or structural issues.
  •       Homeowner no longer needs a house at all anymore.

Q. How does a homeowner end up at the conclusion that they must give up the house?

  • Mathematically beyond hope
  • No applicable methods to stop foreclosure
  • Exhausted all options

If you are facing foreclosure, contact us for a FREE initial consultation:

619-800-3082

info@financialfreshstart.org

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The content found on the financialfreshstart Blog is not legal advice and is purely for informational purposes. The Zarcone Law Firm does not guarantee the accuracy, integrity or quality of submissions. The information provided by the bloggers on this site may not represent the opinions of the Zarcone Law Firm or its affiliates. The information contained herein is not a substitute for the advice of an attorney.

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