Has anyone gone through a deed in lieu of foreclosure? ?

Question

What is the process for a deed in lieu of foreclosure? I need to surrender my house but have never really done this.

Answer 1

I have been in the mortgage business for 22 years.  The deed in lieu of foreclosure is better than a foreclosure for one reason only.  The reason is that if you just sign over the home, the lender does not have to spend the money to foreclose- therefore if it sells for less than your balance they won't come after you for the balance.  It will show on your credit as deed in lieu of foreclosure which to a lender is just as bad as a foreclosure.  But at least once it's done you don't have to keep worrying about a deficiency balance coming back to haunt you.

Answer 2

Ask a Realtor. I could go on and on here but it would just confuse you. Frankly you can stay in your house for months and never pay. You can try to sell it and they will give you time to do so. You can short sell it. You can have a raffle and sell tickets. when you have enough to cover the cost of the house and a little extra raffle the house off and pay it off. Then pass the deed to the winner. You could even enter the raffle though there may be rules governing this.

Answer 3

No I have not but I am in real estate. It means that you will sign the deed of trust back over to the holder of your mortgage, so they do not have to go through the foreclosure process.

Answer 4

My husband did this before we were married.

He called the bank told him he wanted to do it. They sent him paperwork to get notarized and he sent it in. They gave him a couple months to get out and then they sold it later for 20k less than he owed. He then had a lawyer work on some stuff for him and it got taken care of as paid. Now we bought another house and everything is fine.

it looks a lot better than foreclosure.

Sorry for your problems!! It is so hard these days.