What is asked for in a deed in lieu of foreclosure?

Question

What type of documents does the mortgage company ask for? How long does the process take? Does there have to be a specific financial reason to be approved for it? Can there be other reasons for a deed in lieu?

Answer 1

I would ask your specific mortgage company on a question like this.  There really isn't a straight answer to your whole question.

Answer 2

They ask for financial information, time to process may take a day or so, there is normally no financial reason for approval, per se.  You aren't making your payments, don't want or can't file bankruptcy, trying to maintain some type of credit worthiness by giving it back to the bank so easy.  There can be other reason like getting that, "pick-a-pay loan", which is bad which is helping most people in CA lose or walk away from their homes.  It' gets so high you can't afford to pay option 3 which is the regular principle and interest loan so you pay option, which is barely enough interest being paid and then that month is being tagged onto your full term loan.

The deed, specifically, ask for the date the grantee was the beneficiary under the deed of trust in favor of the grantee, the amount of the unpaid debt together with costs, amount paid by the grantee over and above the unpaid debt, documentary transfer Tax, if the property was in unincorporated or city and county and legal description, dated the deed in lieu of foreclosure was sign, along with notary acknowledgment or jurat.

Answer 3

You don't want a deed in lieu of foreclosure.  That's where the homeowner signs a "deed" over to the bank in lieu of the bank foreclosing.  It's the same thing, but less cost to the bank.  So in answer to your questions.

Documentation: Quit claim or grant deed

Time to process: a day to sign and record

Financial reason to be approved for it? homeowner is not making the payment

There's lots of reasons for deed in lieu.