Deed in Lieu of Foreclosure
The term “Deed in Lieu of Foreclosure” refers to a deed situation where a home or property owner turns over all interest for a certain property to the lender in order to satisfy a loan that has defaulted in an effort to avoid a foreclosure. This deed instrument offers multiple advantages for both parties involved because this situation immediately absolves the borrower from the majority of debt associated with said loan in default. This also benefits the borrower because it is less detrimental to his or her long-term credit standing than a traditional foreclosure would be. Lenders are generally satisfied with the minimal time and cost associated with a deed in lieu of foreclosure versus the drawn out process of an actual foreclosure. In many foreclosure cases, angry home and business owners have been known to exact revenge upon lenders by destroying repossessed property or stealing metal and other components such as appliances and even doors and windows. A deed in lieu of foreclosure minimizes the potential for borrower revenge as in some foreclosure situations.
If you have been unsuccessful in short selling your home and face the eminent risk of a foreclosure, call our attorneys at the Los Angeles Law Offices of I Los Angeles Bankruptcy Attorneys to discuss a deed in lieu of foreclosure as a possible solution. This voluntary transfer of title from borrower to lender may release you from your financial burdens and prevent you from losing your home to a foreclosure.
Understanding the Deed in Lieu of Foreclosure Process
To successfully proceed with a deed in lieu of foreclosure, both lender and borrower must enter into the transaction on good terms and 100% voluntarily. A settlement agreement that is reached must be carefully considered in terms of the market value of the home or property. Understanding the whole picture of a deed in lieu of foreclosure is essential to obtain a successful outcome and a skilled attorney will assist you in determining whether your debt exceeds to fair market value of the property. If it does exceed this market value, many lenders will be reluctant to proceed with a deed in lieu of foreclosure and will opt for foreclosure so that they can take possession of the home or property, ensuring a clean title. In some situations, lenders will make exceptions as a way of avoiding the excessive cost and loss of valuable time associated with a traditional foreclosure. When both parties voluntarily agree to the deed in lieu of foreclosure conditions, they may proceed with settlement negotiations.
Contact a Deed in Lieu of Foreclosure Attorney Today
We are proud of the rock-solid reputation we have earned among our former clients and colleagues and look forward to providing you with high quality legal assistance as you deal with the possibility of Chapter 11 or 13 bankruptcy or foreclosure on your home. Please contact our offices located in Sherman Oaks and Los Angeles today to speak with one of our bilingual staff members and to start the process of financial recovery. As a Southern California debt relief agency, we are standing by to assist you. Call us at (213) 699-3055 today for a free consultation.