The Deed In Lieu Process

: Chris Lee Law Firm

  Filed under: Mortgage

deed in lieuPursuing a deed in lieu of foreclosure may provide some benefits as an foreclosure alternative, but it can be a confusing process. Although it may not take as long as other mortgage debt relief options, it does come with some additional considerations. In order to maximize your chances of mortgage relief it is important you get to know the process you are considering.

 

The Breakdown

The first step to any mortgage debt relief is to contact the lender. Many lenders hold a strict process by which they require debtors to follow in order to obtain help. A deed in lieu is usually not the first step of the process and you may be required to attempt to sell the home first. Some lenders require that you try and sell the home, either through a traditional or short sale, for at least three to six months before requesting a deed in lieu.

In many cases, a foreclosure attorney can best assist you when navigating the short sale or deed in lieu process. They can ensure that you get in touch with your lender’s Loss Mitigation Department to find out whether you will be responsible for any fees associated with the deed in lieu transaction. You will also be required to submit a letter of explanation regarding your financial situation and stating that the deed in lieu request is voluntary on your part.

Be prepared to wait and be patient. Lenders don’t always get back to you right away and you may want to politely follow up with them weekly, or have your foreclosure attorney mediate your interactions. Once the lender approves your deed in lieu request you will be required to complete numerous documents that absolve you of debt liability and transfer the deed to your lender.

 

 


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