DEED IN-LIEU OF FORECLOSURE
| If other alternatives to foreclosure will not solve a borrower's problem and they do not want to or can not do a "SHORT SALE", the option of offerring the lender a "deed in-lieu of foreclosure" can allow the borrower to give the home back to the lender instead of allowing the foreclosure to be completed. This option can only be used in certain situations since all junior liens remain on the property as well as senior ones! By foreclosing, the lender can wipe out all junior encumbranceds or liens! Therefore, lenders are very reluctant to take a "deed-in lieu" unless they are sure they are the only lien on the property. Lenders will generally only consider a deed in-lieu if that is the case and as a last resort should a short sale not have been successful. They usually will just foreclose to be sure that all other liens are wiped out! |