Can I Do a Deed in Lieu of Foreclosure Instead of Short Sale?
When I speak with home owners in financial distress, the last thing they really want to contemplate is putting their home on the market. Getting it cleaned up and ready for showings is stressful enough for a family excited to move to the next home. In cases of Short Sales, the move is a necessity, not a desire, so listing can feel like a major pain. And so I'm often asked, "Can I do a Deed in Lieu of Foreclosure instead of a Short Sale?"
Here's what I've learned in my experiences with mortgage banks. Most banks will allow you to do a Deed in Lieu of Foreclosure only once the property has been listed with a REALTOR® for 120 days without an offer. You can't make the home difficult to show, or discourage offers either. Believe me, the bank really is doing their best to NOT get your home as inventory. They would rather you do a Short Sale.
In Northern Virginia, putting your home on the market and priced right, in today's market, you can expect an offer within a week. Forget thinking that you will be on the market four months with no offer.
So the answer is this, you can pursue a Deed in Lieu of Foreclosure, only AFTER you've attempted to market your home for a Short Sale for four months with no offer.
Comments(8)