Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is a method sometimes used by a lienholder on property to avoid a lengthy and expensive foreclosure process.
With a deed in lieu of foreclosure (DIL), a foreclosing lienholder agrees to have the ownership interest transferred to the bank/lienholder as payment in full. The debtor basically deeds the property to the bank instead of them paying for foreclosure proceedings. Therefore, if a debtor fails to make mortgage payments and the bank is about to foreclose on the property, the deed in lieu of foreclosure is an option that chooses to give the bank ownership of the property rather than having the bank use the legal process of foreclosure.
A DIL can be used in limited circumstances. The debtor must have exhausted all efforts to sell the home professionally marketed at it’s as-is, fair market value. The debtor also can’t have another mortgage in default and must not have the ability to make the monthly payment or make up the difference between the sale price and what is owed.
Please review the fee schedule below and contact one of our Team Members to assist you with the Deed in Lieu of Foreclosure process.
Deed in Lieu of Foreclosure Related Forms
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