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 17/06/2009
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.
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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 17/06/2009
You have a few common options.
1. You can do nothing. The bank will proceed with its foreclosure action and reclaim the property. This is usually the worst option to take. In some cases, the mortgage company might not make enough on the sale to cover the loan. The bank may have the option to sue the borrower for the deficiency.
2. You can ask the bank to accept the property, and dispense with the foreclosure. In most cases, the bank will not take any further action. This is typically called a “deed in lieu of foreclosure.”
3. You can attempt to sell the property. If you sell it for more than the loan, plus closing costs, you keep the difference. If you sell it for less than the loan, the bank may waive the difference. This is called a “short sale.” In a short sale situation, the borrower should not receive any money from the sale. Also, the borrower may have to pay taxes for the amount of the debt that was forgiven by the short sale.
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What is a “deed in lieu”?
Posted by David Leon in Foreclosure on 17/06/2009
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.
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
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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 15/01/2009
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. If you would like to discuss your problem with us, please call us at (214) 696-0021
If you would like to discuss this with our firm, please call us at (214) 696-0021, or click below to instant chat with us.
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The Leon Law Firm Dallas, Texas & NY, NY Business Lawyers (214) 696-0021
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