Posts Tagged ‘deed in lieu’
I want to give the property back to the bank and walk away from my mortgage. How do I do this?
Posted by: David Leon in Foreclosure, loan modifications on June 17th, 2009
If you do not wish to keep your property, then you can request a deed in lieu of foreclosure. Each mortgage company has its own unique guidelines for deed in lieu transactions. Typically, the mortgage company will want some documentation of inability to pay, and will require a lengthy approval process. An attorney’s office or reputable loan modification company may be able to assist. As a borrower, you should confirm that the mortgage company or lender will release you from any further liability in exchange for the deed.
I want to abandon my property and walk away from the loan. What should I do?
Posted by: David Leon in Foreclosure, Real Estate Law, loan modifications on June 17th, 2009
You have a few common options.
1. You can do nothing. The bank will proceed with its foreclosure action and reclaim the property.
2. You can ask the bank to accept the property, and dispense with the foreclosure.
3. You can attempt to sell the property.
What is a “deed in lieu”?
Posted by: David Leon in Foreclosure on June 17th, 2009
A deed in lieu of foreclosure is when a borrower transfers a property to the lender. In exchange, the lender does not pursue a foreclosure. In many cases, the lender will accept a deed in lieu as a settlement of the total amount due. A popular term for this is “cash for keys.”
A deed in lieu is typically employed when a borrower (or mortgagee) can no longer afford to keep the property, and cannot find a buyer. The property should be vacant at the time, and the lender (or mortgage company) will have to approve the deed in lieu prior to the borrower relinquishing ownership rights.
I am behind on my mortgage. What happens next?
Posted by: David Leon in Foreclosure, Legal news and errata, Real Estate Law, loan modifications on January 15th, 2009
This is becoming more and more common. Many people are facing adjustable rate mortgage (ARM) hikes, or their property values have declined to levels below their purchase value. Couple this with lost jobs, sudden illness or just plain bad luck, and you have a mortgage problem.
As for what happens next, here is the process, in a very summarized way:
If you do not pay your mortgage, you will be in default, per the terms of your mortgage agreement. Usually the first step is a call from the mortgage company asking you what happened. This is a time to ask for any programs that may help you save your home.
If you are unable to work something out at this stage, the next step is for the mortgage company to issue you an acceleration notice. This means that the entire amount of the mortgage due immediately.
After the acceleration, the mortgage company may file for a foreclosure, in which they can place the house for auction (typically on the first Tuesday of the month). After the house is sold at auction, the new owner may file suit for an eviction.
If you are evicted, a constable will be issued to your home, remove the contents, and eject you from the house.
As with most legal matters, the longer you wait to speak with someone, the more difficult it becomes to help you. If you are in trouble with your mortgage, then you should consider getting help as quickly as possible.
