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What is a Deed in Lieu of Foreclosure? A Deed in lieu of foreclosure is when a homeowner voluntarily surrenders the real property, giving it back to the lender in exchange for a release or satisfaction of the mortgage.  The deed, the legal document which conveys ownership of real property, is given to the lender in lieu of (instead of) the lender having to file a foreclosure complaint and use the courts to satisfy the debt or acquire the property at judicial sale.  This option is sometimes attractive to lenders because it spares them the expense and time of the legal work required to complete a judicial foreclosure.  It is attractive to struggling homeowners because it terminates the future payment obligations under the mortgage, and usually releases them from most or all of the past due payment obligations.  Although individual situations vary, it is typically an even exchange:  ownership of the property is surrendered by the homeowner and the lender agrees to forego collection of most or all past due and future amounts that would otherwise be due under the terms of the note and mortgage.

The deed in lieu of foreclosure offers several advantages to both the borrower and the lender. The principal advantage to the borrower is that it immediately releases him/her from most or all of the personal indebtedness associated with the defaulted loan. The borrower also avoids the public notoriety of a foreclosure proceeding and may receive more generous terms than he/she would in a formal foreclosure. Another benefit to the borrower is that it hurts his/her credit less than a foreclosure does. Advantages to a lender include a reduction in the time and cost of a repossession, lower risk of borrower revenge (metal theft and vandalism of the property before sheriff eviction), and additional advantages if the borrower subsequently files for bankruptcy

What is Required for a Deed in Lieu of Foreclosure?

In order for us to get a real estate Deed in Lieu of Foreclosure accepted for you, we first must list your home for sale. During the listing period, you will need to provide the following documents to us so that we may package a real estate Deed in Lieu of Foreclosure request to your existing mortgage lenders.

Documents required for Real Estate Deed in Lieu of Foreclosure

	Last two years tax returns and any tax schedules
	Most recent month of paystubs
	Most recent two months of bank statements for savings/checking accounts
	Current mortgage payment coupons/statement for existing mortgages

With these documents we create a package as to why you require a Deed in Lieu of Foreclosure and submit this to the appropriate department at your lender.

Who can Qualify for a Deed in Lieu of Foreclosure?

Typically, the mortgage lenders will only accept a Deed in Lieu of Foreclosure if you are at least one month behind on your mortgage payments, don't have a ready and willing buyer and you are unable to debt service all of your existing liabilities. Also, if you financial situation has changed and you are currently making less money than before and you have no more savings, you most likely qualify for a real estate Deed in Lieu of Foreclosure. This is the reason why we need to above documents to paint a clear financial picture of your current situation.

For more information on how our services could benefit you please call The Law Offices of Justin McMurray, P.A. at (904) 248-4482 for a FREE consultation. That is (904) 248-4482 for a FREE consultation on how we can help solve your mortgage problems

Need More information about a Deed in Lieu of Foreclosure?

The hiring of a Jacksonville Bankruptcy & Foreclosure Attorney is an important decision that should not be based solely upon advertisements. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.