Deed in Lieu of Foreclosure: CleanStart College
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Deed in Lieu of Foreclosure - Helpful Information
What is a Deed in Lieu of Foreclosure?
A deed in Lieu of Foreclosure (DILOF) is very similar to a foreclosure except that a home owner voluntarily gives up the property title to the lender instead of being forced to do so through the normal Foreclosure process. In this case, you tell your mortgage company that you don't want to bother with the formalities of foreclosure and they can just have the property. A Deed in Lieu of Foreclosure is sometimes called a friendly foreclosure.
The reason that a person would choose a Deed in lieu of Foreclosure is because it can lessen the damage to a person’s credit history. Though a person's credit rating will still be negatively affected, a person can argue in the future that they acted responsibly when faced with a certain Foreclosure.
Who can qualify for a Deed in Lieu of Foreclosure?
Anyone faced with a certain Foreclosure may be able to complete a Deed in Lieu of Foreclosure but it should only be treated as a last resort. You should be aware of all your options before going through with a DILOF or Foreclosure.
Contact us today to find out whether a DILOF, Foreclosure or other option would be best to give you a clean start now.
How does the Deed in Lieu of Foreclosure process work?
The Deed in Lieu of Foreclosure process would really just be an offshoot of the Foreclosure process. Read more about foreclosures here: Foreclosures: CleanStart College
The most important part of the DILOF process is deciding whether or not you want to do it. Once you have decided to do this, the process comes down to convincing the bank to accept your deed in lieu of Foreclosure as they are not required to do so.
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