Deed in Lieu of Foreclosure Explained
The fundamental concept of a deed in lieu of foreclosure is simple, and it is exactly what the name implies. The homeowner who is facing the looming threat of foreclosure contacts the bank with an offer to surrender the deed in exchange for forgiveness of the remaining loan balance. If the bank accepts the offer, it receives the deed and does not hold the homeowner liable for any further payment on the mortgage. Actually carrying out this strategy for avoiding foreclosure is not, however, as simple as it may sound.
Success in carrying out a deed in lieu depends on having a skilled Gainesville foreclosure defense lawyer on your side to negotiate on your behalf and help you obtain the outcome you deserve. Deed in lieu is actually in the best interests of the bank, since it can potentially save them tens of thousands of dollars in legal costs and lost revenues, but it is often difficult to get them to see revenues, but it is often difficult to get them to see that this is the case. Through skilled negotiation and the ever-present reminder that you may instead be compelled to declare bankruptcy or to sue the bank for predatory lending or Truth in Lending Act violations, it may be possible to persuade the bank to approve your request and to cooperate with the deed in lieu process.
Advantages of Deed in Lieu
Even if you are ready to let go of the house and move on in life, it is highly advantageous to do everything you can to avoid foreclosure. In the event that the foreclosure sale does not raise sufficient funds to pay off the remaining loan balance, the bank has a legal right to sue you for the deficiency on the loan, meaning that you could not only lose your home but could even still be forced to continue paying on the mortgage. In addition to this, you need to protect your credit score from the damage of having a foreclosure on your report. Contact The Law Offices of Justin McMurray, P.A. now for a free consultation to discuss your situation and to learn whether this is the right option for you or if you would be better off pursuing a short sale or other foreclosure defense strategy.