Deed in Lieu of Foreclosure

An unlikely solution

One foreclosure alternative that is commonly promoted by banks and loan servicers is a "deed-in-lieu" of foreclosure (DIL).  This alternative is suggested by banks and the federal government as a way for homeowners to give title to their property back to the lender.  Often the lender will even entice the unwary homeowner by suggesting that the homeowner may even qualify for up to $3000 in financial assistance for relocation and moving costs.

The unfortunate truth is that deeds-in-lieu of foreclosure are relatively rare, and are generally only available to homeowners that can demonstrate documented financial hardship.  Essentially, if you could continue to pay the mortgage if you chose to, it is exceedingly unlikely that you will qualify for a deed-in-lieu of foreclosure under the standard industry guidelines.

In a perfect world, the borrower and the lender would enter into a Deed-in-Lieu agreement that allows the property owner to voluntarily transfer the property over to the lender.  While this sounds easy, there is much more involved than mailing the keys to the lender and moving out.  Many unwary homeowners have completed deed-in-lieu transactions only to discover later that they still owe money to the bank for the amount they were underwater on the loan.

If you have been considering a deed-in-lieu of foreclosure and would like to discuss why this may not be a good option for you, contact The Forrest Law Firm for a free consultation.  We would be pleased to provide you with information concerning why a Strategic Default may be a better option than a deed-in-lieu of foreclosure.  Our Strategic Default Plan may just be the solution you've been searching for.

Looking for a Sarasota or Manatee Foreclosure Defense Lawyer?

Call The Forrest Law Firm today at 1-800-915-3923 for an informative and comprehensive consultation on how The Forrest Law Firm can help you.