Deed In Lieu Of Foreclosure Filings Soar 5 Fold

By
Real Estate Agent with Joe Manausa Real Estate 8508880888

Tallahassee Deed In Lieu Of Foreclosure ImageYesterday’s blog post regarding non arms length home sales in Tallahasseedistressed properties in the Tallahassee housing market. We saw that the ratio of arms length home sales to non arms length home sales continues to grow, thus creating concern that the shadow inventory of homes in Tallahassee is also growing. With this in mind, I started digging around the recorded home sales with the hopes of finding something that might be useful in gauging this growth. highlighted some serious concerns about the growth of

Finding Ways To Track Distressed Property Levels

The first thing I thought about is worthy of today’s entire blog post. I figured that we should take a look at the trend of people who are giving their homes back to the lender. There is a legal way to do this and it is called surrendering the deed in lieu of foreclosure.

For homeowners who cannot keep up with the monthly payments on a mortgage and wish to stop the foreclosure process, they can consider just signing their deed over to the bank “in lieu” of being foreclosed upon. At a minimum, it reduces expenses to the bank in the form of attorney fees and court fees that might ultimately be added to the deficiency that the homeowner will face.

Deed In Lieu of Foreclosure On The Rise

Unfortunately, the real estate graph below shows that the number of Deed in Lieu of Foreclosures is on the rise in the Tallahassee housing market. Historically, Tallahassee has seen about 1 in every 400 home sales being a Deed in Lieu, but currently we are seeing five times that number (1 in 78) and the trend is rising.

[click to see graph of deed in lieu filings and conclusion for future forecast…]


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Rainmaker
5,342,788
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for sharing this information. Best wishes for continued success. Have a great weekend.

Sep 18, 2009 12:39 AM #1
Ambassador
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Brian Schulman
Coldwell Banker Residential Brokerage, Lancaster PA - Lancaster, PA
Lancaster County PA RealEstate Expert 717-951-5552

Deed in lieu is better than a foreclosure for the borrower's credit, but is still a significant negative hit.

Sep 18, 2009 12:41 AM #2
Rainmaker
1,159,842
Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Thanks Roy, you too!

Sep 18, 2009 12:41 AM #3
Rainmaker
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Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Hey Brian, I figure after 180 days late, how bad is a deed in lieu going to affect the credit? I think historical reactions can be thrown away for our current crisis, but time will tell...

Sep 18, 2009 12:43 AM #4
Rainmaker
594,680
Associate Broker Falmouth MA Cape Cod Heath Coker
http://www.CapeGroup.com & http://www.REindex.com - Falmouth, MA
Heath Coker Robert Paul Properties Falmouth MA

I think these are better than foreclosure, faster, and a lot more productive than just mailing the keys to the bank.

Sep 18, 2009 12:45 AM #5
Rainmaker
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Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Maybe so Heath, but they are starting to stack-up!ab

Sep 18, 2009 04:23 AM #6
Rainmaker
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Joe Manausa
Joe Manausa Real Estate - Tallahassee, FL
Tallahassee Real Estate

Maybe so Heath, but they're starting to stack up!

Sep 18, 2009 04:24 AM #7
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Rainmaker
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Joe Manausa

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