Deed in Lieu of Foreclosure Lawyer in Florida
Experienced Attorneys Helping Families Secure A Deed in Lieu of Foreclosure in Florida
If you are facing foreclosure in Florida, there are options available. In some cases, you can transfer the deed of your property to the lender to be released from your mortgage. This is one way in which those facing foreclosure can secure positive outcomes. With some properties, a short sale is not a viable option. When this is the case, you may be able to pursue a “deed in lieu of foreclosure.” Speaking with a skilled mortgage attorney will help you to understand the various choices available to you.
Deed in lieu of foreclosure allows you to potentially resolve the delinquency on your loan. This arrangement also helps you to avoid a costly and difficult foreclosure.
Additionally, some lenders will agree to forgive the remainder of the loan. This is especially true after the property has been sold.
A deed in lieu of foreclosure lawyer will fight hard to protect your best interests. The accomplished team at our Foreclosure Defense Law Firm has the knowledge and experience to secure positive outcomes for our clients.
What is the Deed in Lieu of Foreclosure Process?
A deed in lieu of foreclosure, also known as “deed in lieu,” provides a way for mortgage holders to avoid repossession of their property. This is one type of agreement between lenders and borrowers to deal with deficient payments.
In this type of arrangement, the homeowner agrees to give up their property and the lending institution agrees not to foreclose. In some cases, the borrower will even receive financial assistance to relocate.
Deed in lieu of foreclosure agreements require the borrower to surrender all of their legal rights related to the property. In exchange for this release, they may be forgiven from their financial obligations.
It is not uncommon for homeowners to fall behind on their mortgage payments. This is especially true if they have experienced financial difficulties or losses.
These may include:
- The death of a family member or loved one
- A significant decrease in income
- The loss of a job
- A divorce or partner separation
- Other debts, such as medical bills
These are only a few examples of the financial challenges that mortgage holders face. Because these situations are common, banks and lenders have many ways to deal with delinquent mortgages.
What Are Some Positive and Negative Elements of Deed in Lieu?
A deed in lieu of foreclosure can be useful for people in many different financial situations. The most common scenario is when a borrower has fallen behind on their payments.
But this option may be useful in other scenarios, as well. For example, you might pursue a deed in lieu if you owe more money than your home is currently worth.
This option may also be beneficial if you have been unable to sell your home, despite trying. No matter what the circumstances, speak with an accomplished deed in lieu of foreclosure lawyer in Florida as soon as possible.
Like every debt relief option, a deed in lieu of foreclosure has both advantages and disadvantages. Some of the benefits include the following:
- Potential for immediate release from mortgage debt
- Avoiding the public attention that comes with a foreclosure
- More generous terms than foreclosure
With a deed in lieu, you will not be responsible for the sale of your former property. This relieves you of hours of difficult work.
As with anything, there are also disadvantages to this type of agreement. Some of the most common challenges and disadvantages include:
- Potential disqualification due to a second mortgage
- Potential disqualification due to home equity loans or liens
- Negative tax consequences, depending on the mortgage amount
If you believe that deed in lieu of foreclosure might be right for you, consult with a trusted Florida attorney.
The skilled team at our Foreclosure Defense Law Firm will thoroughly examine the facts of your case. We will help you stay informed so that you can make the best decision possible.
What is the Deed in Lieu of Foreclosure Process?
Depending on your lender and mortgage servicer, the deed in lieu process may vary. To qualify, you will usually need to try to sell your home for 90 days at its market value.
If you have not attempted to sell your home, you may not be eligible for a deed in lieu agreement. Also, you are usually ineligible if there are other liens on your property.
For most deed in lieu agreements, the borrower must leave the home in good condition and sign ownership to the lender.
In some instances, the lending institution will allow the former homeowner to continue renting the property. This relieves the pressure of finding fast housing accommodations.
In other cases, the borrower may receive funds for relocation after signing over the deed.
Deficiency Judgment Negotiations
When you agree to a deed in lieu, you have the option to negotiate the current deficiency. Not every instance of a deed in lieu agreement provides total debt relief.
This agreement is completely voluntary between you and your lending institution. Because of this, you can negotiate what happens to your debt.
It is advantageous to secure the legal services of a skilled attorney. An expert foreclosure lawyer will effectively negotiate with your lender.
It is possible to negotiate a deed in lieu deal that enacts any of the following options:
- The lending institution agrees not to pursue a deficiency judgment
- The borrower pays back only a portion of the deficiency
- The borrower agrees to pay back their deficit incrementally
It is important to note that there can be tax consequences for the forgiveness of a deficient loan. In this way, both deed in lieu and foreclosures have consequences for borrowers’ credit.
How Can a Florida Deed in Lieu Attorney Help Me?
In most situations involving this type of agreement, it is a good idea to contact a legal professional. Even if you do not hire a mortgage lawyer, you should schedule a consultation.
A deed in lieu attorney can help you properly fill out legal documents and application forms. They will also ensure that you submit all the necessary paperwork to qualify for a deed in lieu of foreclosure.
A legal professional can help if the lender will not release its right to pursue a deficiency judgment. The deficiency on a property is the difference between fair market value and the debt that is owed.
For instance, suppose your house is worth $120,000 and you owe your bank $150,000. In this case, the deficiency would be $25,000.
Some banks will attempt to collect deficiency even after a deed in lieu of foreclosure agreement. To avoid this negative consequence, secure trustworthy legal advice.
Contact the Florida Mortgage Attorneys at our Foreclosure Defense Law Firm
If you are facing the daunting prospect of foreclosure, do not wait. Reach out to the skilled team at our Foreclosure Defense Law Firm now.
Our compassionate lawyers know how to fight effectively for those who face mounting debt. We believe that everyone deserves expert legal representation.
Whether you are facing a foreclosure or want to modify your mortgage, we can help. Our attorneys boast more than five decades of combined experience.
Our Foreclosure Defense Law Firm maintains an A+ rating from the Better Business Bureau. Call us today to schedule a free initial legal consultation. You will be happy that you did!