A Way to Stop Home Foreclosure
Like a short sale, offering your mortgage company a deed in lieu of foreclosure is a way to eliminate mortgage debt when your property is worth less than what you owe on it.
At the law firm of Weintraub & Selth, APC, we offer solutions to homeowners who are burdened by mortgage debt. In addition to deed in lieu of foreclosure, our lawyers offer mortgage loan modifications, short sales and sale-leasebacks. Our lawyers serve distressed homeowners across the United States and in Los Angeles, Santa Monica, the San Fernando Valley, South Bay and all surrounding communities in southern California.
What Is a Deed in Lieu of Foreclosure?
With a deed in lieu of foreclosure, you offer the mortgage lender the deed in exchange for cancelling your indebtedness. Even though the lender does not receive full payment with the deed, they will not face the expense and delay of a foreclosure proceeding.
California lenders typically will not accept a deed in lieu of foreclosure unless you have already tried to sell your home on the market. Lenders with large inventories of foreclosed homes may be hesitant to accept the deed even if you have been unable to sell your home. Also having a junior lien may eliminate your chance of resolving your mortgage through a deed in lieu.
As with a short sale, it is necessary for your lawyer to negotiate a release so you are not personally liable for any deficiency in your payment. You may also face possible tax consequences and liability issues with junior lien holders.
While no one knows for sure if a deed in lieu of foreclosure or a short sale is less damaging to your credit than foreclosure, we believe it may be better than simply walking away from the property and allowing the lender to foreclose. It's important to get a lawyer's advice to determine which option — deed in lieu of foreclosure, short sale, loan modification or bankruptcy — would be the best option for you.
For more information: To discuss a deed in lieu of foreclosure with one of our Los Angeles attorneys, call (310) 584-7702 ((866) 572-2423 toll free) or complete the contact form on this Web site. Se habla español.
