Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

An Interesting Alternative to Foreclosure: A Deed in Lieu of Foreclosure
 
There is a new (actually renewed ) option for underwater homeowners who cannot, or do not want to pay their mortgage.  A deed in lieu of foreclosure is an agreement between the bank and the borrower.  The borrower gives the home back to the bank and the bank does not have to go through the foreclosure process.  It can be a win win situation for both the bank and the borrower. The government HAFA program is the major force behind this renewed option.  If a borrower does not qualify for a loan mod, or gets a mod and is not able to make the payments, this government program encourages the banks and the borrowers to pursue either a short sale or a deed in lieu.  By encouragement I mean gives financial incentives, in order to decrease the number of foreclosures, vacant homes, and neighborhood blight.  Under the HAFA deed in lieu program the borrower agrees to give the home back to the bank and in exchange the bank helps with some relocation costs and also agrees not to pursue a deficiency judgment.   Depending on the state the borrower lives in and they type of loan, after a bank forecloses or agrees to a short sale ... more

__________________________________________________
Are you on The Rain? Grow Your Network!