Deed In Lieu- Should You Do A Deed In Lieu?

Are you facing tough decisions as you are dealing with your lender who is going to foreclose on your home? Should you do a short sale or a deed in lieu? Or should you just walk away?

Have you tried to do a loan remodification and you were turned down?

Now you are at loss as to what to do. Are you late in your mortgage payments? Are you going to be late on your mortgage payments soon? What are you going to do?

Your neighbors tell you all about foreclosures, your family gives you yet more advice and it is all mixed up, you don't know who to believe anymore.

You see Loss Mitigation companies opening up all over the place; sending you advertisments on their services and yet you discover as you call them that they really do not know what the heck they are doing and they want upfront fees to help you in this stressful time.

These are your options when you are late on your payments in the order of severity to your credit:

• Repayment arrangement of your delinquency
  

• Modification of your loan

• Short Sale the property

• Deed in Lieu- turn in your deed instead of a foreclosure

• Foreclosure

• Bankruptcy

In this post we are going to discuss the deed in lieu.

A deed in Lieu in Florida is giving your house back to your lender in place of them foreclosing on you. There are certain criteria you have to meet in order for your lender to approve the Deed in Lieu.

• You must be current in your property taxes.

• Your property must be lien free except for the mortgage.

• You must be current on your HOA fees, Condo fees, etc.

• Your offer to turn in your deed must be approved by the noteholder.

• It is treated the same as a foreclosure when you want to buy another home.
  

Many homeowners are delinquent in their taxes and late on their HOA fees so they would not qualify. The next thing is that the lender can still go after you with a default judgment. You must check with your lender in case they may be waiving any of these conditions.

You have to negotiate with the lender and require that they do not come after you after you turn in the deed for a deficiency judment when they sell the home at a loss. Whatever the bank sells the property for they will come after you for the balance. But you may be able to get this waived.

You must get this in writing from your lender that they are going to waive their right to a deficiency against you and you have to get an attorney to review the paperwork to make sure you are in the clear.

The Deed in Lieu effects your credit more than a short sale. So you have to weigh the benefits versus the detriments.

Many lenders are not even accepting Deeds in Lieu right now because they just own too many properties and they want you to do a short sale. So you will need to call your lender and see if they would even entertain a deed in lieu offer from you.

If you are going to do a short sale choose an agent that knows how to do short sales, ask for references. Call Nestor Gasset or Katerina Gasset at 561-753-0135 for short sales in the state of Florida.

 

We have an entire series of short sale articles below. The first in the series is at the bottom of the list and it moves up from there: 

short sale series: Short Sales In Palm Beach County and Port St Lucie- How Long Does It Take? Short Sale Series Part 13   Short Sales In Palm Beach County and Port St Lucie How Long Does It Take? Short Sales In Palm Beach County and Port St Lucie- How Long Does It Take?  Short Sale Series Part 13 Short Sales In Palm Beach County and Port St Lucie will take anywhere from 30 …

short sale series: Short Sales- Qualifying The Homeowner For A Short Sale -Part 12 -   Short Sales- Qualifying The Homeowner For  A Short Sale- Part 12- One of the key steps to making sure your short sale listing goes to closing. Whenever a homeowner calls us and tells us he/she wants to do a short sale we ask first what do they know and understand …

short sale series: Short Sales and Foreclosures In Palm Beach County Florida- Part 11*What The Homeowner Needs To Pay! -   Short Sales in Palm Beach County and in Saint Lucie County Florida are rising at a steady pace. You can not look for a house for sale without noticing that there are short sale listings everywhere. No community is really immune to this. I first thought that the waterfront was immune …

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short sale series: Successful Short Sale Closings And We Got Paid! Short Sale Series Part 9 -   Successful Short Sale Closings And We got paid Successful Short Sale Closings And We Got Paid! Short Sale Series Part 9 We closed on 2 short sales successfully and both were our listings. They were both difficult transactions but in the end we got our checks,

short sale series: Short Sales- Everything You Ever Wanted To Know About Short Sales But Were Afraid To Ask Part 8 -   Short Sales Everything You Ever Wanted To Know Short Sales- Everything You Ever Wanted To Know About Short Sales But Were Afraid To Ask Palm Beach County Short Sales- Short Sales- Information For Sellers and Buyers.

short sale series: Short Sales In Palm Beach County Florida- Part 7 *Inside The Process* -   short sales part 7 Short Sales In Palm Beach County- Part 7- Inside The Process To understand the entire process of Short Sales In Palm Beach County Florida please read the articles below before reading this post. This will give you a greater understanding to where we are in …

short sale series: Short Sales In Palm Beach County Florida Part 6- After The Offer Comes In. -   short sales in palm beach county part 6 Short Sales In Palm Beach County - Part 6- After The Offer Comes In.

short sale series: Short Sales In Palm Beach County Part 5- Short Sale Myths and Truths About Offers -   Short Sales in Palm Beach County Florida- This short sale series is to help sellers, buyers and their agents understand the complexity of using the Short Sale process as an alternative to Foreclosures.

short sale series: Short Sales In Palm Beach County Florida- Part 4 *The Process Begins* -   This series on Short Sales In Palm Beach County Florida continues as we explore what happens once an offer is made on a short sale listing. This post is of special interest to buyers who are interested in making offers on short sales. You should know what is involved and your

short sale series: Short Sales In Palm Beach County- What You Need To Know Part 3 -   The Short Sales in Palm Beach County is a series of articles for sellers and buyers to better understand what a short sale is and how to proceed with closing with a short sale. In order to understand where we are at in the series please read part 1 and part

short sale series: Short Sales In Palm Beach County- Part 2- What You Need To Know -   Welcome to part 2 of our series, 'Short Sales In Palm Beach County- What You Need To Know. If you have not read Short Sales In Palm Beach County Part 1 then please take a moment to read the first in this series.  Just because you own a house in Palm...

short sale series: Short Sales In Palm Beach County Florida- What You Need To Know If You are Buying Or Selling. Part 1 -   If you live here you most likely have heard of short sales in Palm Beach County Florida. You may have heard about them from the news media or from your friend down the street or your neighbor or even perhaps one of your family members. We will go through important information …

 

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Contact Nestor Gasset and Katerina Gasset, CIPS, Realtors®, International Properties and Investments, Inc. Licensed Realtors® in Florida at 561-753-0135 to list your property for sale or to purchase a property in Wellington, Royal Palm Beach, Loxahatchee, Lake Worth, Hypoluxo Island, Lantana, West Palm Beach and the rest of Palm Beach County Florida and Port St Lucie Florida. We are accepting referrals.

Call us today at 561.753.0135 or Toll Free 800.444.3316. Contact us by email if you prefer by clicking on email me on the right side of this page under our profile.

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Disclaimer:The information provided herein is supplied by several sources and is subject to change without notice. Wellington Homes Blog does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either express or implied. Entries on Wellington Homes Blog represent the opinions and ideas of the author(s). Wellington Homes Blog does not express the views of International Properties and Investments, Inc or those of the broker.

P.S. If you are listing your home as a short sale in Palm Beach County Florida and Port St Lucie Florida make sure you hire an agent who knows how to do short sales and has the experience to get the job done. We are doing successful short sale packages. Call us at 561-753-0135 to find out more about Palm Beach County Short Sales and Port St Lucie Short Sales.

Copyright © 2008 By Katerina Gasset, All Rights Reserved.* Deed In Lieu- Should You Do A Deed In Lieu?*