You have options if you are facing foreclosure. One of the options you may have is surrendering your deed to your mortgage lender in lieu of foreclosing on the house. This is called a deed in lieu of foreclosure. You can have a better outcome if this is a viable option for you.
Getting a free consultation with our Florida foreclosure defense lawyers is the best first step you can take if you are worried about having to go through foreclosure. If you can take this path, you could end up without delinquency on your loan or a challenging foreclosure.
Please keep reading to learn more about how you can avoid foreclosure with a deed in lieu of foreclosure.
The Process of Deed in Lieu of Foreclosure
A deed in lieu of foreclosure involves agreeing with your lender on how you will deal with your payment deficits. You will need to relinquish ownership of your home to your mortgage lender. In exchange, they will not put you through foreclosure and may even offer you some financial relief.
You will need to give up your legal rights to your home, often resulting in your financial obligations to the property being forgiven.
Many folks end up behind on their mortgage. Financial issues can hit at any time unexpectedly. You may have lost a loved one, seen a drop in income, lost your job, gone through a divorce, or have medical debt.
Fortunately, mortgage lenders provide you with options when making payments becomes challenging to keep up with.
Pros and Cons of a Deed in Lieu of Foreclosure
There are pros and cons to every option that avoids foreclosure. However, when the pros outweigh the possible cons, it is likely worth the risk. Please keep reading if you want to learn about the pros and cons of a deed in lieu of foreclosure.
Pros
You can benefit from ridding yourself of mortgage debt. You will not have to deal with how public a foreclosure is. You will not be responsible for selling your home, which can be a lot of hard work.
Cons
You may not be able to get another mortgage in the future. A deed in lieu could have negative impacts on your taxes. You may not be eligible for a deed in lieu based on past mortgages.
The Job of Your Lawyer in This Process
Having a lawyer help you with a deed in lieu is a good call. While not everyone will require legal help with their issue, consulting with a lawyer can save you some headaches.
Hiring a lawyer is a good idea if you don’t want to make mistakes with your applications and documents. Your lawyer will ensure you are not missing any information in your application. Missing information and documents often results in rejection and delay, which you likely do not want to go through.
If your lender refuses to forgive you for your deficiency, a lawyer can help you navigate this process. If you owed $100,000 on a home that is currently worth, you would be deficient $20,000. Your lender may try to collect this deficiency from you in a deficiency judgment. A lawyer can help you avoid this if you have been attempting to pursue a deed in lieu.
Call Our Florida Foreclosure Defense Lawyers
We will gladly take your call if you wish to schedule your free consultation to talk about a deed in lieu of foreclosure. Our Florida foreclosure defense lawyers have been helping people avoid foreclosures for years. You deserve to have a lawyer who will fiercely represent you. You will be glad you reached out.