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Foreclosure Defense Attorney
If you are behind on your mortgage payments and are facing foreclosure on your home, you may be able to avoid foreclosure by giving up ownership of your home instead. If your lender agrees, you can turn over the deed to your property in a deed in lieu of foreclosure action, which allows both you and your lender to save time and money that might have been spent on litigation.
Our attorneys at Boss Law can help you determine if this option would be beneficial in your situation. We can meet with you and review your case to determine the best course of action to protect your interests and your future.
Deed in Lieu of Foreclosure
One option for responding to a foreclosure action is a deed in lieu of foreclosure.
Additional benefits of deed in lieu of foreclosure include:
How Does a Deed in Lieu of Foreclosure Work?
Homeowners who opt to try for a deed in lieu of foreclosure must sign several legal documents, including a quit-claim deed and an Agreement in Lieu of Foreclosure. The quit-claim deed conveys legal ownership of the property to the lender. The Agreement in Lieu of Foreclosure sets out the terms and conditions of the arrangement and is signed by both the borrower and the lender.
Upon completion of these forms, the lender will mark the borrower’s note as “paid” and provide the borrower with two important documents: one which states that the debt has been cancelled, and another waiving the lender’s right to pursue the unrecoverable debt in a deficiency judgment. After the agreement is executed, the borrower is officially released from all obligations under the mortgage.
Keep in mind that there are two conditions under which lenders may be unlikely to consider a deed in lieu of foreclosure. Those conditions are as follows: