Short Sale and Deed in Lieu of Foreclosure

Short Sale and Deed in Lieu of ForeclosureSometimes circumstances make it impossible for you to afford the mortgage payments on your home. In these instances, you may be surprised to find that there are still alternatives to foreclosure. Short sale and deed in lieu of foreclosure are solutions that allow you to gracefully exit the property. These agreements will reduce the damage to your a future that a foreclosure can result in.

The two most common foreclosure alternatives are short sale and deed in lieu of foreclosure.

Short Sale

In a short sale, your lender agrees to settle your loan for less than the amount you owe. They do so by allowing a sale of the house to a third party for that lesser amount.

Deed in Lieu of Foreclosure

A deed in lieu of foreclosure, also known as a “deed-in-lieu” (DIL), means returning your property interest to the lender. This return is done in exchange for your mortgage debt being forgiven.

These solutions can be negotiated by your foreclosure defense attorney if you are seeking a graceful exit strategy.

Lenders have many reasons for agreeing to foreclosure alternatives like short sales and deed in lieu of foreclosure. The biggest reason is that it is less expensive than a foreclosure. It also keeps the property from remaining unoccupied for a length of time, which becomes a financial liability for lenders.

Foreclosure Alternative Relocation AssistanceBanks lose more money in a foreclosure because of lost interest, attorney fees, court costs, eviction expenses, selling costs, and property maintenance. The longer the process drags on, the more money the lender will lose. A short sale is faster, so the lender just gets their money sooner. This usually makes the short sale option much more attractive than foreclosure. A good foreclosure attorney can negotiate cash incentives for short sale relocation expenses.

Borrowers can benefit from a short sale or deed in lieu of foreclosure by avoiding the stress and embarrassment of a foreclosure. It also prevents the credit damage of a foreclosure, so you can recover faster. Many lenders are even offering cash incentives for short sales and deed in lieu of foreclosure options. If your foreclosure attorney negotiates well, you can get out of a troubled mortgage and back on the road to recovery with cash.

Speak to a foreclosure defense attorney today and find out if short sale or deed-in-lieu of foreclosure (DIL) is right for you!

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