Deed In Lieu of Foreclosure
I’ve seen recent requests for information about the process of a deed-in-lieu of foreclosure.
In it’s simplest form, it’s simply the owner of a property giving the lender a deed to the property instead of the lender completing a foreclosure action. While it might seem like a good option to the homeowner who knows they can’t keep up with their payments, lenders really do not want properties signed over to them.
It is important to note that sending the lender a deed does not transfer the property title, the lender must accept the deed.
So what are the requirements for a deed in lieu?
Typical requirements will be that the property has no other loans/liens, the owner cannot afford to continue making payments, the property must be left clean, and the owner must have tried to sell the property on the open market.
Here are some links to web pages that have a little bit more information about deed in lieu from major participants in the lending industry.
Fannie Mae Loss Mitigation Policies
Hud Deed in Lieu of Foreclosure Fact sheet
VA Deed in Lieu
Policies are pretty much equivalent across the board with a few minor differences, if you have questions or comments about a deed in lieu, they can be posted here.
February 3rd, 2008 at 10:21 pm
When in Washington, seek foreclosure listings of REO properties
Washington foreclosure listings which contain REO, (real estate owned) properties are the least risky as well as being the simplest.
September 27th, 2008 at 1:31 pm
I took a VA home loan in 1999, at 409 S. Brookfield Dr. Lafayette, In 47905.
We were able to make our house payments untill 2005. My wife was unable to work due to an illness and her doctor told her she was not able to work full time because of fibromyalgia. Her doctor said she was disabled. My wife filed for social security disablity. We had to file chapter 13 and went on a 5 year plan to make our payments. We were current on our payments untill I was layed off March 07, 2008 due to lack of construction work. We have our house for sale and hope to sale it before it is foreclosed on. I dont want to leave a black mark on my VA benifits. I might want to buy another home sometime. I was just hired to a construction firm in Gatesville, TX on September 25. 2008. The company wants us to be moved to TX by October 10, 2008. Our loan is with GMAC and our home is listed with Sharon Schlott 765-404-0617 with Coldwell Banker the Shook agency in Lafayette, In
Sharon@SharonSchlott.com
www.SharonSchlott.com
We just wanted to let you know we had full intentions to keep our home, since we have been here for 10 years.