Literally, recession and even its shadow have kissed us goodbye and we are relieved. What is not good for many Americans is they are still not financially strong to pay their bills in time and even pay the bills at all. The banks’ financial records show the number of home loan defaulters has significantly gone down in recent years though there are several homes nearing foreclosure.
If you are considering foreclosure for your home or at fault about how to deal with loan non-payment issue, there is a workable solution for people like you. According to CEO of LegalAdvice.com Matthew Reischer, ‘a deed in lieu of foreclosure’ might work in your favor.
A deed in lieu of foreclosure – what is it all about?
At times, some unfavorable circumstances make it difficult for you to meet both ends meet without any hitch. When you are living in a tight financial situation, you could be at risk of losing your most valuable asset – your house. If you could avoid such a problem by negotiating with your lender over loan modification, it’s fine. However, if the negotiation does not work out, you should consider other options and a deed in lieu of foreclosure could be a choice for you.
It is a little-known but effective instrument enabling the borrower transfer all interest locked in a real estate asset to the lender. That helped me keep foreclosure proceedings at bay and believe me; it will hopefully come to your rescue by satisfying an in-default loan.
A deed in lieu of foreclosure – How does it help the borrowers?
First of all, it unchains a borrower from all kind of responsibilities to clear the loan in defaults, implying that you will no longer be responsible for the unpaid loan following transfer of the deed. The lender is the new owner of your house and has the liability to meet the dues.
Secondly, this option helps the borrowers win better terms that were less likely to come with property foreclosure. It’s a point of note that such a deal may produce some negative effects on the borrower’s credit score. So make sure to consult an expert before you take an action.
Point to Note:
In most of the cases, the lenders may not like the idea of ‘a deed in lieu of foreclosure’. Remember that the lenders are more in favor of foreclosure. The expert representing you must convince your lender that ‘a deed in lieu of foreclosure’ is an option with double-edged benefit.
It is important for you to be in know-how of all the avenues available, no matter whether you adopt a particular option or not.