Don’t Let the Bank Take Your Home - Consider a Deed in Lieu of Foreclosure
Posted by: real estate / Category: ForeclosuresA Deed in Lieu of Foreclosure rather than a foreclosure might be an alternative for home owners in financial distress. A Deed in Lieu of Foreclosure is when the home owner voluntarily agrees to sign the deed over to the mortgagee (Bank). Similar to short sales, a Deed in Lieu of Foreclosure, the terms need to be negotiated with the bank. Please don’t just leave your keys in the mailbox with an note for the bank!
For success a Deed in Lieu of Foreclosure is usually predicated on the fact that there is only 1 lien on the home. Second loans, tax liens, home equity lines of credit, etc…. will make it nearly impossible to do this type of transaction.
There are advantages both to the home owner and the bank in a Deed in Lieu of Foreclosure.
Homeowner Benefits:
- Avoid the embarrassment of a foreclosure
- Potentially being released from owing the balance of the loan after the sale
- Avoid the hassles of selling your property, no cleaning the property up, no showings, etc…
- Less impact on the home owners credit than a foreclosure
Lender Benefits:
- Saves Time…
- Saves Money ….
To foreclose on a property in Massachusetts the process can take many, many months. Every month that goes by costs the bank money in carrying costs. Once the Bank starts foreclosure proceedings on your home, the bank can plan on spending $35,000 to $50,000 in expenses. A Deed in Lieu of Foreclosure can be a relatively simple way to get out of a house you can’t afford. This type of transaction is being considered more and more by the banks.
If a Deed in Lieu of Foreclosure is not a possibility, than a short sale is the next and final step to prevent the bank from taking your home. Remember, don’t let the bank take your home, you have many options before the bank forecloses.
This article was provided by Kevin Vitali of EXIT Group One Real Estate. Tewksbury Massachusets. Realtor/ Real Estate Agent serving all of your Real Estate needs in the Merrimack Valley, Essex County, Middlesex County and Southern New Hampshire. Kevin is your local Short Sales Realtor.
Kevin_Vitali
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Tags: Foreclosure, Lease, mortgage, Real Estate Agent