What Is A Deed In Lieu of Foreclosure?
A deed in lieu of foreclosure is a legal device whereby a borrower transfers all interest in a property to the lender to satisfy a loan that is in default and avoid foreclosure proceedings. The deed in lieu of foreclosure offers several advantages to both parties. The borrower is immediately released from most or all of the debt associated with the defaulted loan and avoids a foreclosure proceeding. The lender saves the time and cost of foreclosure. In the Chicago area, if you are overwhelmed by mortgage debt, one of your options may be a deed in lieu of foreclosure. If the lender agrees, the lender will require several documents: tax returns, bank statements, and a hardship verification letter. If you’re struggling with mortgage debt, let an experienced Chicago foreclosure lawyer help you decide if a deed in lieu of foreclosure is the option that’s in your best interests.
Even if a deed in lieu of foreclosure may be right for you, your lender must also agree to it. Because a deed in lieu of foreclosure must be voluntary, lenders often will not act upon a deed in lieu of foreclosure unless they receive a written verification from the borrower that specifically states that the deed in lieu of foreclosure is voluntary. While a deed in lieu of foreclosure lets a lender avoid the inconvenience of foreclosure proceedings, the disadvantages for a lender may outweigh the benefits. A good Chicago foreclosure lawyer can negotiate with your mortgage lender regarding a deed in lieu of foreclosure as well as other alternatives.
If you are facing or anticipating a foreclosure on your home in the Chicago area, a deed in lieu of foreclosure is one possible option; bankruptcy is another. Your wisest first move is to review your circumstances and your options with an experienced Chicago foreclosure lawyer who routinely helps homeowners in the Chicago area. If foreclosure is threatening your home and your family, or if you simply need advice regarding your options so that you can plan for the future, make the call to a Chicago foreclosure lawyer as quickly as possible.
