There are many ways to avoid foreclosure and a Deed in Lieu is one of the many options. This is where the bank accepts the property in return for forgiveness or restructuring of debt. In many cases the bank wipes the debt free and allows the homeowner to move on with their life.Hire A CDPE To Sell Your Home
Handing the house back to the bank can have many positive impacts on a homeowner. The first and most obvious is the fact that the homeowner avoids foreclosure. The deed in lieu is considered a cooperative way for both parties to protect themselves.
Spokane Short Sale Specialist
Some of you may have received a call from a Realtor representing the mortgage holder on your loan. They are offering a financial incentive in return for a deed in lieu. This is a real program and the lenders are giving homeowners financial incentive to secure the home, make sure it's in reasonable shape, and free the property of any liens. Once these tasks are complete the bank will pay the homeowner for the keys and forgive their debt.
If there is a second mortgage on the home or any damages, the homeowner can use the proceeds to pay for repairs or settle the additional liens.
Why is the bank willing to do this? The lenders are facing an astronomical number of REO listings and foreclosures. These processes take time and money and when the lender takes possession of the property through foreclosure there is no guarantee that the property condition will be acceptable. It costs money to repair, hold, and sell these properties and the banks are liable for these costs.
If they can work a deal with the homeowner to turn over the keys, ensure the property condition, and allow the homeowner a chance to relocate...they are leaps and bounds ahead of assuming a property through foreclosure. If you are eligible for this program don't ignore it!
