Deed-in-lieu of Foreclosure
For specific situations, it’s possible that you might want to pursue a deed-in-lieu of foreclosure – and that’s something that the foreclosure attorneys at Foreclosure Attorney in Westchester NY can assist you with. More often than not, we advise our clients to try to work out loan modification or repayment plan agreements with the lenders they’re in debt to, but if the financial situation is simply not manageable and a foreclosure looks inevitable, a deed-in-lieu could be a favorable alternative. In some ways, a deed-in-lieu is similar to a short sale agreement, though there are some noteworthy distinctions. Below, you’ll find further details regarding the deed-in-lieu process, the reasons that you might want to pursue this course of action, and just why we’re the number one foreclosure attorney service for this procedure.
What is a Deed-in-lieu of Foreclosure?
So, what exactly is a deed-in-lieu of foreclosure, and how does the process work? Put in basic terms, a deed-in-lieu is where the borrower agrees to hand over the title to the property to the lender in exchange for the agreement that they will be released from their mortgage obligation. As you can see, it’s not so different from a foreclosure, but where it differs is that you might be able to get some favorable terms alongside the release of the title. While a deed-in-lieu is going to negatively impact you, the likelihood is that it’ll be much less damaging than a foreclosure process would be.
Avoiding Sale Procedures
When you make the decision to go ahead with a short sale for your property, you need to take on the sale process yourself. That means finding a potential buyer, and following the rules and procedures to make sure that the sale is closed successfully. With a deed-in-lieu you’re going to avoid all of that hassle, as the property will be under the control of the lender, and they’ll deal with the sale.
Buying You Time
When a foreclosure goes ahead, the likelihood is that you’ll be evicted from your property as soon as the lender wants it clear and free. With a deed-in-lieu agreement reached, it’s possible that the lender will agree to let you stay in the property until they see fit. Generally speaking, this is likely to be quite a bit longer than what you’d get if you were in the midst of a foreclosure. As the lender is going to be handling the sale of the property, you’ll have some time to make plans before you’re required to leave.
There are undoubtedly serious credit implications for those who go down the deed-in-lieu route – those are simply unavoidable – but they aren’t as stigmatized or severe as they’d be if you went with a foreclosure. Those who suffer from foreclosure generally find it that much harder to get back on the property ladder, even way down the line – so it’s critical that you take every measure available to you to make sure that doesn’t happen.