What is a Deed in Lieu of Foreclosure?
A deed in lieu of foreclosure is when you agree to exchange the deed to your property for the release of your obligations to your mortgage. The deed is the legal document that declares ownership of the property. By exchanging the deed to your property with your lender, you will be able to avoid the foreclosure process and the use of the courts to settle you delinquent mortgage. Depending upon the negotiation with your lender, the deed in lieu of foreclosure can eliminate the remaining balance on your mortgage and offer you an opportunity to start fresh. Since negotiating with a lender can be difficult to do on your own and negotiating the terms of the deed in lieu can be stressful, it is recommended that you get the help of an Ocala deed in lieu of foreclosure attorney to handle the negotiations and help you through the entire process.
Benefits of a Deed in Lieu of foreclosure
A deed in lieu of foreclosure can prove to be beneficial to both you and the lender. You are released from the burden of having to pay a mortgage that you can no longer afford and the lender will receive your property as compensation for the debt that you cannot pay. The foreclosure process takes much more time to complete and costs lots of money in court and lawyer fees, and a deed in lieu of foreclosure can avoid all of that. A foreclosure has a much greater negative effect on your credit score than a deed in lieu of foreclosure does, which allows you to get back on track financially quicker.
Who qualifies for a Deed in Lieu of foreclosure?
You may qualify for a deed in lieu of foreclosure if you are more than one month behind on your mortgage payment, you cannot debt service your current debts, and you were not able to complete a short sale. Most lenders will only agree to a deed in lieu of foreclosure if you are not financially capable of paying your mortgage due to a job loss, income decrease, or unexpected acquired bills.
If you think that you may qualify for a deed in lieu of foreclosure then contact an Ocala foreclosure defense attorney today to set up a free consultation to find out what your options are.