Deed in Lieu of Foreclosures were more popular during the last bust (late 1990's)...all the rules have changed now.

~Deb Cullen, Century 21 Sunbelt, Cape Coral, FL (aka Paradise) , 239.233.2322

Fernando, great point.

Some lenders are agressively offering homeowners the deed-in-lieu of foreclosure but stipulate that the house must be listed with a Realtor for 90 days before the the deed will be accepted. That is plenty of time to complete or make significant progess on a short sale which is ultimately better for the homeowner.

Fernando, my experience with Short Sales is that they often lead to Foreclosure because the banks have made the Short Sale process so cumbersome and many times one department of the bank does not communicate with the others which leaves the sellers, buyers, agents, title companies and lawyers hanging out to dry.

I listed a short sale last week with nearly the same situation.  No payment from the homeowners in nearly 4 months.  They got scared and moved out when they fell behind.  Called the mortgage company last week and was told to list the house and attempt a short sale.  The mortgage company told the sellers they would work with them to get the house sold.  They do not want the house back as a deed-in-lieu or a full blown foreclosure.