| Avoid Foreclosure |
| Short Sale |
| Deed-In-Lieu |
| Forbearance |
| Mortgage Modification |
| Renting the Property |
| Bankruptcy |
| Mortgage Refinance |
| Short Refinance |
| Deed For Lease |
| Service Members Relief |
| Sale of Property |
What is a Deed-in-Lieu
A deed-in-lieu allows an owner to return the property to the lender rather than go through the foreclosure process. The lender then sells the property in order to retrieve a part, or whole of the loan balance owed. A deed-in-lieu may not be an option if there are other liens on the property, such as a second mortgage, judgments from creditors, or tax liens unless you qualify for a government sponsored program.
Government Programs
The Home Affordable Modification Program now offers a Second Lien Modification or Deed-In-Lieu option for qualified borrowers. While HAMP has had mixed results, the Second Lien Modification Program coordinates with HAMP’s first mortgage modification program to lower payments on second mortgages while providing lender incentives for a short sale or deed-in-lieu that could potentially release borrowers from future liability for the debt.
The Fastest Solution
A deed-in-lieu may be the fastest solution for Tampa Bay homeowners out of a foreclosure. However, very few lenders will negotiate a deed-in-lieu if a lien, or second mortgage has already been taken out on the home.
The Fine Print
If you are considering either a deed-in-lieu or a short sale, review the terms and conditions of the transaction carefully. Make certain you understand whether or not a deficiency balance is forgiven, or how long the lender can pursue a deficiency judgment. Both options can save you from the distress that foreclosure will cause on your credit, finances, future employment and, most importantly, your stability. We recommend relying upon a real estate attorney to evaluate the deed-in-lieu terms and the often ambiguous language contained within lender communications.
As Certified Distressed Property Experts (CDPEs), Annette, Doug and Dale Bohannon can offer an overview of alternatives to selling your home, but we recommend that you meet with an attorney to explore all the legal options and ramifications. Contact the Bohannons at Coldwell Banker Residential Real Estate in Tampa, Florida for more information.
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FTC DISCLAIMER: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender [or servicer]. If you reject the offer, you do not have to pay us. If you accept the offer, you will have to pay us [per the listing agreement] for our services. Coldwell Banker & Team Bohannon are not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
FURTHERMORE: The listing agent will not provide Sellers with legal or tax advice. Sellers should consult a certified public accountant in the matters of state and federal taxes. Sellers should seek independent Counsel such as a real estate attorney to understand the legal implications and questions about selling the property. The listing agent may only perform clerical functions relating to the “short sale” part of the transaction.
