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About Deed in Lieu of Foreclosure
For some home owners who are being threatened by the possibility of foreclosure, losing their home might not be their biggest concern. If you are prepared to move out of your home and move on to something new, a deed in lieu could help you with the new step for your family. Some have struggled for months and even years seeking to keep current with payments. You could have come to a point in which you simply want to move on because keeping the home is not worth it to you. If the effort of keeping your house is not affordable and does not appear to be your best long term option, you can figuratively “wash your hands” and move away from the house as opposed to fighting to keep something you cannot afford. In cases like these, often the quickest solution and also a simple solution could be to negotiate to work out what is called a “deed in lieu” of being foreclosed.
In the case of a deed in lieu of being foreclosed upon, your Dallas County foreclosure defense lawyer from the Bright Law Firm of Richard Weaver can represent you in your bankruptcy, and where necessary, can recommend certain things such as a deed in lieu. Generally speaking, these types of negotiations to perform a deed in lieu with the bank are fruitless for the homeowner in the absence of a bankruptcy. The goal of many law firms for their clients is to persuade the bank to accept the home’s deed for the property as a return for the bank forgiving the borrower for the mortgage balance. The owner surrenders the house and property’s deed over to the lender, and in turn, the lender agrees not to seek money, judgment or other collection activity regarding a mortgage deficiency judgment to obtain the balance owed.
Advantages of Deed in Lieu Over a Strategic Default
Deed in lieu of foreclosure can have with significant advantages when compared to a strategic mortgage default simply standing by while the lender moves to foreclose on the home. One example comes with a lesser hit to a credit score in typical circumstances. Additionally, the borrower can also negotiate to have the lender allow time to stay in the home longer than otherwise allowed under a typical eviction. This could prepare the borrower with time to obtain funds to deposit down on a new housing situation and with more time to arrange moving. Because this method provides a benefit to the lender as well by removing the need to carry out complex legal work involved in foreclosing on a property, it can encourage the bank to make concessions with the borrower about certain things. However, simply notifying the bank that you want to perform a deed in lieu isn’t enough. Before you simply notify the bank and stop sending payments, you must obtain their approval and in many cases, a fair amount of negotiation would need to be undertaken.
Contact the Bright Law Firm of Richard Weaver
Need an attorney to learn whether a deed in lieu is the right option for you? Contact the foreclosure defense law firm of Dallas County and the entire metroplex area by calling Richard Weaver’s office for your free phone or office consultation. You can learn if deed in lieu is your best option and whether bankruptcy could help you eliminate debt from the mortgage and other unsecured debts such as credit cards, medical debt, and more. Call for a free consultation today and find that our office is prepared to assist you start to end with handling your legal and financial concerns. We seek the opportunity of winning your trust as we fight with you to protect what is important to you. We may be able to protect your home from foreclosure and we certainly seek the best interests in your financial future to come. By Pete Maughan.