In a short sale, your lender agrees to settle your loan for less than the amount you owe, by means of a sale of the house to a third party. A “deed-in-lieu” of foreclosure (DIL) means returning your property interest to the lender in exchange for your mortgage debt being forgiven. These solutions can be negotiated by a foreclosure defense attorney for clients seeking a graceful exit strategy.
Lenders have many reasons for agreeing to foreclosure alternatives like short sales and DIL. 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.
Banks 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 and a good foreclosure attorney can negotiate cash incentives for short sale relocation expenses.
Borrowers also benefit from a short sale or DIL 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 deeds-in-lieu 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!