10 Tips for Deed in Lieu of Foreclosure Success

10 Tips for Deed in Lieu of Foreclosure Success

The 10 tips for deed in lieu of foreclosure success may greatly benefits distressed homeowners who are considering pursuing a deed in lieu as an alternative to foreclosure. When facing home foreclosure, a deed in lieu may seem like a confusing and stressful process. In reality, the entire process may be completed fairly smoothly by following an organized series of steps and processes.

Homeowners should consider reviewing the 10 tips for deed in lieu of foreclosure success in order to have the best opportunity at getting approved and following through with a deed in lieu of foreclosure.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 1

The first tip of the 10 tips for deed in lieu of foreclosure success focuses on helping homeowners understand if they should pursue a deed in lieu or not.

Determine if you may be a good candidate for a deed in lieu of foreclosure.

Depending upon a homeowner’s current situation, he or she may be a good candidate for a deed in lieu of foreclosure, but he or she may also be a good candidate for a different foreclosure alternative. You may wish to consider a deed in lieu of foreclosure when :

  • You cannot refinance or get a loan modification.
  • You are facing a potentially long-term financial hardship.
  • You have defaulted on your mortgage payments or are facing imminent default.
  • You have an underwater mortgage.
  • You cannot continue to afford your home and are ready to leave.
  • You do not want to sell your home and/or are unable to sell the home.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 2

The second tip of the 10 tips for deed in lieu of foreclosure success focuses on encouraging homeowners to take thorough look at their current situation so they will be prepared to speak with a foreclosure defense attorney and/or their mortgage lender.

Evaluate your current situation.

Important factors to examine about your situation may include:

  • The current market value of your property
  • The total unpaid mortgage amount on your mortgage loan
  • How many mortgage payments have been missed, if any
  • How much time is left until a foreclosure sale date

10 Tips for Deed in Lieu of Foreclosure Success – Tip 3

The third tip of the 10 tips for deed in lieu of foreclosure success focuses on encouraging homeowners to consult with an expert in the real estate industry prior to speaking with their mortgage lenders.

Get a free consultation from a foreclosure defense attorney in your area.

Foreclosure defense attorneys can be a great resource for homeowners to consult with prior to negotiating with mortgage lenders about a deed in lieu of foreclosure. These attorneys may review a homeowner’s current situation and determine if they are good candidates for a deed in lieu of foreclosure and may recommend other alternatives to foreclosure.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 4

The fourth tip of the 10 tips for deed in lieu of foreclosure success focuses on helping homeowners to initiate the deed in lieu process with their mortgage lenders.

Consult with your mortgage lender about a deed in lieu of foreclosure.

Mortgage lenders must approve a request for a deed in lieu of foreclosure, so homeowners must reach out to them in order to apply. It can be a smart idea to explain your situation and ask them to recommend any potential foreclosure defense options. If they say a deed in lieu of foreclosure can be a viable option, you may be able to move forward with the deed in lieu of foreclosure process.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 5

The fifth tip of the 10 tips for deed in lieu of foreclosure success focuses on encouraging homeowners to negotiate with their mortgage lenders to avoid a deficiency judgment.

Ask for a deficiency forgiveness after the deed in the lieu of foreclosure.

Mortgage lenders may come after homeowners for a deficiency judgment after a deed in lieu of foreclosure. Homeowners should consider negotiating with mortgage lenders to forgive the unpaid mortgage amount during a deed in lieu of foreclosure in order to avoid a deficiency judgment.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 6

The sixth tip of the 10 tips for deed in lieu of foreclosure success focuses on helping homeowners achieve the least damaging effects to credit scores as possible after a deed in lieu of foreclosure.

Ask your mortgage lender to report the deed in lieu to the three credit bureaus as a paid settlement or satisfied. Also ask about removing any previous negative reporting from your credit report.

While not every lender may agree to these terms, it can never hurt to ask. This may benefit homeowners tremendously by potentially receiving less damaging effects to credit ratings.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 7

The seventh tip of the 10 tips for deed in lieu of foreclosure success focuses on preparing homeowners to submit their deed in lieu application to their mortgage lenders.

Gather all of the necessary documents and information in order to submit a deed in lieu of foreclosure application.

Documents and information homeowners may need to gather in order to submit a deed in lieu of foreclosure application may include:

  • The property’s address and loan number
  • Most recent W-2’s or 1099
  • Paycheck stubs
  • Bank statements
  • 2 years of tax returns
  • Assets, debt and liabilities statement
  • Any foreclosure notices or dates
  • Hardship letter

10 Tips for Deed in Lieu of Foreclosure Success – Tip 8

The eight tip of the 10 tips for deed in lieu of foreclosure success focuses on finalizing the deed in lieu of foreclosure process.

Submit your deed in lieu of foreclosure packet to your mortgage lender.

After following the tips outlined above, it may be time to submit your deed in lieu of foreclosure application to your mortgage lender. Be sure to include all of the necessary documents and it is usually advisable to send the application sooner than later.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 9

The ninth tip of the 10 tips for deed in lieu of foreclosure success focuses on preparing homeowners to move out of the home.

Prepare the home to leave on a specified date.

It is very important to insure the inside and outside of the house is in good condition. There should be no exterior trash and all of your belongings should be moved completely out by the move out date.

10 Tips for Deed in Lieu of Foreclosure Success – Tip 10

The tenth and final tip of the 10 tips for deed in lieu of foreclosure success focuses on preparing homeowners for the final step of the deed in lieu of foreclosure process.

Turn over your keys to your mortgage lender.

With the homeowner’s belongings all moved out and the house in good condition, it may be time to finally turn over the keys to the mortgage lender. This may mark the final end to the deed in lieu of foreclosure process.