Deed-In-Lieu
A Deed in Lieu of foreclosure occurs when a mortgage borrower voluntarily surrendered the property to the lender in exchange for being release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from mortgagors who can financially make their mortgage payments.
Why A Deed-In-Lieu of Foreclosure May Not Work . . .
Your mortgage bank may not want to take the house from you, preferring to rack up needless expenses and legal fees in order to drain your equity. Look at it this way – if the bank takes the house back without a foreclosure lawsuit, they can’t tack on additional fees and costs. When they add all of those fees and costs they can still chase you for the money even after the house is sold.
It’s a win-win for the bank – they get the house AND they get more money from you.
Why You May Not Want A Deed-In-Lieu of Foreclosure . . .
When you do a deed-in-lieu of foreclosure, you are giving up the fight too easily. You surrender your home without forcing the bank to actually prove its case. Your home is gone, your family forced to move, and your credit wrecked for years to come.
It’s important for you to know all of your options, good or bad. They are (in no particular order):
- Short Sales
- Chapter 13 Bankruptcy
- Walking Away (also known as “jingle mail”)
- Defending The Foreclosure
- Refinance
- Forbearance
- Foreclosure “Rescue” Scams
Don’t be a sucker – fight back against the abuses of the mortgage industry.