Deed-in-lieu?

A deed-in-lieu is where you voluntarily give the deed to your house to your lender and the lender does not (have to) foreclose to get you out of the home and get the property back. Thus, the concept "in lieu," meaning "instead of."

The pros of a deed-in-lieu include unloading your property with little hassle and on a timeline that is known to you; not having to suffer the embarrassment of  being evicted by the sheriff ; and, most importantly, you can possibly reach agreement with your lender in advance as to how much money (if any) you will have to pay the lender.

In many deed-in-lieu arrangements, while the lender will agree to take the house back and cancel your loan, but sometimes it comes at a cost, i.e., you will have to pay the lender something for this. Compare this to a foreclosure, where you won't know what the house will sell for, and in Florida you can be sued for the difference between what you owe and what the house sold for (called a deficiency judgment). Compared solely to a foreclosure,  doing a deed-in-lieu can be a much better option. However, if a short sale is at all possible (as it most always is), I would opt to go that route instead of giving the deed to your lender.

Thanks for reading…Steve Jackson

Info@ShortSales123.com

My direct line: 561.602.1258